It’s a harsh certainty that a Victoria Park residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Victoria Park property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Victoria Park will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Engaging our service gives you increased control over the value of your Victoria Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the freeholder of her basement apartment in Victoria Park, Alexandra commenced the lease extension process as the eighty year deadline was rapidly nearing. The transaction was concluded in January 2012. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were contacted by Mr and Mrs. P Harris , who was assigned a lease of a purpose-built flat in Victoria Park in May 2009. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable homes in Victoria Park with an extended lease were worth £260,200. The average amount of ground rent was £65 billed annually. The lease termination date was in 2091. Taking into account 66 years remaining we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including fees.
Last March we were called by Dr Tommy Lee , who completed a purpose-built apartment in Victoria Park in November 2008. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Identical flats in Victoria Park with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 billed annually. The lease finished in 2080. Having 55 years outstanding we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of legals.