When it comes to domestic leasehold property in Victoria Docks, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Victoria Docks with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has fewer than eighty years left, under the relevant Act the landlord can calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Victoria Docks with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Victoria Docks leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Arthur, came perilously near to the 80-year threshold with the lease on his leasehold apartment in Victoria Docks. Having purchased his home twenty years ago, the lease term was of little bearing. Thankfully, he realised he needed to take steps soon on Extending the lease. Arthur extended the lease at the eleventh hour in March. Arthur and the landlord subsequently settled on sum of £5,500 . If the lease had slipped lower than 80 years, the price would have become more costly by at least £900.
Dr V James took over the lease of a purpose-built flat in Victoria Docks in November 1996. The question was if we could approximate the premium could be for a ninety year lease extension. Identical premises in Victoria Docks with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 invoiced quarterly. The lease terminated on 5 October 2080. Considering the 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of expenses.
An example of a Lease Extension decision for a Victoria Docks flat is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case was in relation to 1 flat. The unexpired term as at the valuation date was 69.77 years.