Victoria Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Victoria Park enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Victoria Park you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Victoria Park flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Victoria Park,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Victoria Park valuers.
In recent months Owen, started to get near to the 80-year threshold with the lease on his basement apartment in Victoria Park. In buying his flat twenty years previously, the length of the lease was of little relevance. As luck would have it, he noticed he would soon be paying way over the odds for a lease extension. Owen arranged for a lease extension just under the wire last September. Owen and the landlord in the end settled on an amount of £5,000 . If the lease had gone lower than 80 years, the sum would have gone up by at least £1,025.
Mr and Mrs. V Johnson took over the lease of a first floor apartment in Victoria Park in August 1995. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Victoria Park with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 collected yearly. The lease came to a finish on 23 June 2076. Given that there were 51 years unexpired we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.
In 2014 we were e-mailed by Mr David Robinson who, having took over the lease of a newly refurbished apartment in Victoria Park in October 2012. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparative premises in Victoria Park with an extended lease were worth £280,000. The average ground rent payable was £45 invoiced yearly. The lease elapsed on 23 October 2096. Having 71 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.