Top reasons for Victoria Park lease extension

Why you should start your Victoria Park lease extension today:

A Victoria Park lease depreciates with the years remaining on the lease.

The only way is down when it comes to Victoria Park lease terms. Victoria Park leaseholds that have a remaining term fewer than 80 years will reduce in value even faster, and the cost of extending your lease will increase.

An extended lease has roughly the same value as a freehold

Leasehold properties in Victoria Park with in excess of one hundred years unexpired on the lease are often 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 merit it.

Banks and Building Societies will not lend on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to get concerned at around 75 years. This may cause difficulties when you need to dispose of or remortgage your property as it will be effectively unmortgageable. Even though you might have no immediate desire to sell but when you do your purchaser must hold off for 2 years before they can exercise the right to a an extension to the lease.

Why use us for your lease extension in Victoria Park?

The conveyancing solicitors that we work with handle Victoria Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Victoria Park Lease Extension Example Cases:

Max, Victoria Park, Cardiff,

Max owned a high value apartment in Victoria Park being sold with a lease of just over sixty years outstanding. Max on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Max to exercise his statutory right. Max obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.

Victoria Park case:

Mr Oliver Smith was assigned a lease of a ground floor apartment in Victoria Park in July 1998. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Victoria Park with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease ran out in 2098. Taking into account 72 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.

Victoria Park case:

In 2011 we were contacted by Mrs Chelsea King who, having bought a garden flat in Victoria Park in November 2009. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative premises in Victoria Park with an extended lease were in the region of £233,200. The average amount of ground rent was £60 invoiced quarterly. The lease expiry date was on 6 May 2087. Having 61 years unexpired we calculated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 not including legals.