Victoria Park leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Victoria Park residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Victoria Park you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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.
After protracted negotiations with the landlord of her leasehold apartment in Victoria Park, Kirsty commenced the lease extension process as the 80 year mark was fast coming. The legal work completed in March 2011. The landlord’s costs were kept to an absolute minimum.
Last Summer we were called by Mr and Mrs. P Kelly , who completed a purpose-built flat in Victoria Park in January 1996. The question was if we could estimate the price would be to prolong the lease by ninety years. Identical premises in Victoria Park with 100 year plus lease were valued around £200,000. The mid-range ground rent payable was £50 collected annually. The lease concluded on 24 January 2103. Taking into account 78 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last year we were contacted by Ms Louise Brown , who acquired a studio apartment in Victoria Park in June 2006. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable homes in Victoria Park with a long lease were worth £267,600. The average ground rent payable was £65 billed every twelve months. The lease came to a finish on 16 August 2092. Considering the 67 years left we approximated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus professional charges.