The market value of a leasehold property in Victoria Park depends on how long the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that a lease extension can be finalised prior to the eighty year threshold. Leasehold Reform legislation entitles Victoria Park qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancers that we work with undertake Victoria Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Omar was the the leasehold proprietor of a studio flat in Victoria Park on the market with a lease of a little over sixty years outstanding. Omar informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Omar to invoke his statutory right. Omar obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mrs W David was assigned a lease of a garden flat in Victoria Park in April 2009. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar flats in Victoria Park with a long lease were valued around £181,600. The average ground rent payable was £55 billed yearly. The lease came to a finish in 2078. Considering the 52 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.
Last Christmas we were phoned by Mr Tommy Robinson , who purchased a one bedroom apartment in Victoria Park in October 2000. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Victoria Park with a long lease were valued around £285,000. The average amount of ground rent was £45 billed quarterly. The lease concluded in 2098. Considering the 72 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.