Main reasons to commence your Victoria lease extension

Top reasons for lease extension now:

Increase your lease and increase your Victoria property value

Victoria leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Victoria residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Victoria you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

Victoria property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not lend on a short lease

Lending institutions have set criteria when lending monies charged on leasehold homes. Some will simply refuse lend at all once the remaining lease term falls below a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below seventy years as adequate security. As well as this being important when selling, it is also relevant where you are wanting to remortgage your Victoria property.

Get in touch with one of our Victoria lease extension solicitors or enfranchisement solicitors

Lease extensions in Victoria can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Victoria lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Victoria Lease Extension Case Summaries:

Alex, Victoria, London,

Alex was the the leasehold proprietor of a studio apartment in Victoria being marketed with a lease of just over sixty years remaining. Alex on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Alex to invoke his statutory right. Alex procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.

Victoria case:

In 2009 we were e-mailed by Ms R David who, having was assigned a lease of a purpose-built flat in Victoria in June 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical properties in Victoria with an extended lease were in the region of £235,200. The average ground rent payable was £45 invoiced every twelve months. The lease terminated on 1 May 2092. Considering the 66 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.