Main reasons to commence your Victoria lease extension

Top reasons for lease extension now:

A Victoria lease depreciates with the years remaining on the lease.

It’s a harsh certainty that a Victoria residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Victoria property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Victoria will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.

An extended lease is almost the same value as a freehold

It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Mortgage lenders may decide not to issue a mortgage with a short lease

Many banks and building societies will not lend on a lease with less than seventy years remaining - although this varies between mortgage companies. A purchaser will likely encounter difficulties in obtaining a mortgage and this will result in your Victoria property becoming difficult to sell or remortgage.

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

Irrespective of whether you are a tenant or a freeholder in Victoria,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Victoria valuers.

Victoria Lease Extension Example Cases:

Jayden, Victoria, London,

Jayden was the the leasehold owner of a 2 bedroom apartment in Victoria on the market with a lease of a little over 59 years left. Jayden informally spoke with his landlord being a well known Bristol-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 an increased rent to £100 annually. No ground rent would be due on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

Victoria case:

Mr H Bonnet completed a first floor flat in Victoria in January 2012. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative residencies in Victoria with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 billed yearly. The lease lapsed in 2099. Taking into account 74 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.