The only way is down when it comes to Victoria Docks lease terms. Victoria Docks properties that have a residual term lower than 80 years will reduce in value even faster, and the cost of extending your lease will go up.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Victoria Docks leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Austin owned a high value apartment in Victoria Docks being marketed with a lease of a little over sixty years outstanding. Austin on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Austin to invoke his statutory right. Austin obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were e-mailed by Dr B Baker , who acquired a one bedroom apartment in Victoria Docks in June 2009. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable residencies in Victoria Docks with an extended lease were valued about £300,000. The mid-range ground rent payable was £50 collected annually. The lease concluded in 2099. Taking into account 75 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension case for a Victoria Docks residence 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 related to 1 flat. The number of years remaining on the existing lease(s) was 69.77 years.