The closer a domestic lease in Victoria Park nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Victoria Park will qualify for this right; however a lawyer should be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Victoria Park with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Victoria Park can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 in-depth market knowledge dealing with Victoria Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the freeholder of her first floor apartment in Victoria Park, Maisie started the lease extension process just as the lease was nearing the crucial 80-year mark. The transaction was finalised in March 2014. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were approached by Dr Rory Stewart who, having bought a studio flat in Victoria Park in September 1995. The question was if we could approximate the premium would be for a ninety year lease extension. Similar properties in Victoria Park with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 billed every twelve months. The lease concluded on 28 July 2095. Having 70 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
In 2012 we were called by Mr and Mrs. T Nelson who, having was assigned a lease of a garden flat in Victoria Park in August 1996. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical properties in Victoria Park with 100 year plus lease were valued about £218,400. The mid-range amount of ground rent was £60 collected annually. The lease expired on 13 July 2084. Given that there were 59 years unexpired we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus expenses.