It’s an underpublicised truth that a Victoria Park residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Victoria Park property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Victoria Park will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Victoria Park with more than one hundred years left 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Victoria Park,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Victoria Park valuers.
In the wake of 6 months of unsuccessful discussions with the freeholder of her two bedroom apartment in Victoria Park, Sarah commenced the lease extension process as the 80 year threshold was rapidly advancing. The lease extension completed in April 2010. The landlord’s fees were negotiated to under 550 pounds.
Last Autumn we were called by Ms J Vincent , who was assigned a lease of a studio apartment in Victoria Park in January 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Similar homes in Victoria Park with a long lease were in the region of £210,000. The average amount of ground rent was £50 invoiced monthly. The lease terminated in 2104. Given that there were 79 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
Last Autumn we were approach by Mrs E Simon , who owned a newly refurbished flat in Victoria Park in October 1999. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable premises in Victoria Park with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 collected per annum. The lease ended on 23 August 2093. Taking into account 68 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.