Victoria Park leases on domestic deteriorating in value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Victoria Park will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Victoria Park with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Victoria Park,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Victoria Park valuers.
During the course of the last few months Thomas, started to get close to the eighty-year mark with the lease on his leasehold apartment in Victoria Park. Having purchased his home two decades ago, the length of the lease was of little concern. Fortunately, he realised he needed to take steps soon on Extending the lease. Thomas arranged for a lease extension at the eleventh hour in January. Thomas and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If he failed to meet the deadline, the figure would have increased by a minimum £925.
In 2013 we were e-mailed by Mr and Mrs. P Michel who, having took over the lease of a garden apartment in Victoria Park in May 1998. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Similar premises in Victoria Park with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 collected per annum. The lease lapsed in 2089. Considering the 63 years remaining we calculated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including costs.
In 2009 we were called by Mr and Mrs. C Howard who, having purchased a purpose-built flat in Victoria Park in May 2010. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative homes in Victoria Park with an extended lease were worth £181,600. The mid-range ground rent payable was £55 billed monthly. The lease elapsed on 18 October 2078. Having 52 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including fees.