Why you should commence your Victoria lease extension

Why you should commence your Victoria lease extension today:

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 as a result any extension of the lease becomes more expensive. It is the case that most Victoria tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Victoria you must see if your lease has between 70 and 90 years left. There are compelling reasons why a Victoria flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay

Victoria property with a lease extension is almost the same value as a freehold

Leasehold premises in Victoria with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions will not loan monies with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Victoria lease extensions?

Using our service will provide you enhanced control over the value of your Victoria leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Victoria Lease Extension Case Studies:

Finn, Victoria, London

In 2014 Finn, started to get near to the eighty-year threshold with the lease on his first floor apartment in Victoria. Having bought his home two decades ago, the length of the lease was of no importance. Thankfully, he recognised he needed to take action soon on Extending the lease. Finn extended the lease just under the wire in April. Finn and the freeholder subsequently settled on sum of £6,000 . If the lease had slid lower than eighty years, the price would have become more costly by a minimum £900.

Victoria case:

In 2010 we were contacted by Mr Theo Carter who, having acquired a basement flat in Victoria in October 1995. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable homes in Victoria with 100 year plus lease were valued around £173,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease end date was in 2081. Considering the 55 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of legals.