The only way is down when it comes to Victoria Park lease terms. Victoria Park flats that have a residual term shorter than eighty years will drop in market price even faster, and the cost of extending your lease will rise.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Yorkshire 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. |
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.
Two years ago Teddy, started to get near to the eighty-year threshold with the lease on his leasehold flat in Victoria Park. In buying his property two decades ago, the length of the lease was of no relevance. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Teddy arranged for a lease extension just ahead of time in May. Teddy and the freeholder subsequently settled on the final figure of £5,000 . If the lease had gone lower than eighty years, the price would have escalated by at least £1,025.
Last February we were phoned by Mr and Mrs. U Gómez , who took over the lease of a one bedroom apartment in Victoria Park in February 2003. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable flats in Victoria Park with 100 year plus lease were in the region of £201,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease expiry date was in 2082. Taking into account 56 years remaining we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.
Last Christmas we were phoned by Mrs Isobel Sánchez , who took over the lease of a garden flat in Victoria Park in May 2006. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative properties in Victoria Park with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 billed monthly. The lease finished on 27 May 2102. Having 76 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.