The re-sale value of a leasehold property in Victoria Park depends on how long the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years remaining so that all matters can be concluded in advance of the eighty year threshold. Leasehold Reform legislation entitles Victoria Park qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Victoria Park with more than one hundred 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 reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in Victoria Park can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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.
In the wake of 6 months of lengthy negotiations with the landlord of her garden flat in Victoria Park, Lydia commenced the lease extension process as the eighty year mark was swiftly nearing. The transaction was concluded in September 2006. The freeholder’s costs were restricted to less than 450 GBP.
In 2010 we were phoned by Dr T Rodríguez who, having took over the lease of a purpose-built flat in Victoria Park in January 2010. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparable flats in Victoria Park with a long lease were valued about £210,000. The mid-range ground rent payable was £50 billed monthly. The lease expired on 9 April 2106. Having 80 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
In 2013 we were contacted by Mrs Danielle Rivera who, having purchased a studio flat in Victoria Park in May 2001. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Victoria Park with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 collected monthly. The lease ran out in 2095. Having 69 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.