Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Victoria Park. Clearly, the length of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Victoria Park have the right to extend the lease for an additional ninety years in accordance with statute. You should give careful deliberation before putting off your Victoria Park lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in Victoria Park with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Victoria Park leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted negotiations with the freeholder of her basement flat in Victoria Park, Katherine initiated the lease extension process just as her lease was coming close to the critical 80-year deadline. The lease extension was finalised in April 2013. The freeholder’s costs were restricted to about 700 pounds.
Mr and Mrs. P Bell moved into a recently refurbished flat in Victoria Park in October 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Victoria Park with an extended lease were in the region of £225,800. The average ground rent payable was £60 billed quarterly. The lease lapsed on 14 September 2086. Having 60 years remaining we estimated the compensation to the landlord to extend the lease to be between £25,700 and £29,600 exclusive of professional charges.
In 2011 we were contacted by Mrs H Hernández who, having owned a purpose-built apartment in Victoria Park in September 2011. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar residencies in Victoria Park with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 collected monthly. The lease expiry date was in 2106. Taking into account 80 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.