Victoria Dock leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Victoria Dock will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are also strict timetables and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Victoria Dock with in excess of one hundred years outstanding 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Victoria Dock can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer 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 dealing with Victoria Dock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kian owned a 2 bedroom flat in Victoria Dock being sold with a lease of a few days over sixty years left. Kian on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2012 we were phoned by Ms Amber Davis who, having took over the lease of a basement flat in Victoria Dock in March 1997. We are asked if we could approximate the price would be for a 90 year lease extension. Identical premises in Victoria Dock with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 collected yearly. The lease terminated in 2105. Having 80 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last Christmas we were approach by Mr and Mrs. T Fournier , who took over the lease of a recently refurbished flat in Victoria Dock in June 1999. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar flats in Victoria Dock with an extended lease were worth £275,000. The average ground rent payable was £45 collected quarterly. The lease terminated in 2094. Considering the 69 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.