The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Victoria Park may extend the lease for an additional ninety years in accordance with legislation. Please give careful consideration before delaying your Victoria Park lease extension. Postponing that expense now simply escalates the amount you will ultimately have to pay to extend the lease.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| The Mortgage Works |
Retaining our service gives you increased control over the value of your Victoria Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Hugo, came very close to the eighty-year threshold with the lease on his purpose- built apartment in Victoria Park. Having purchased his property twenty years ago, the unexpired term was of little bearing. Fortunately, he realised he would imminently be paying an inflated amount for a lease extension. Hugo was able to extend his lease just ahead of time in May. Hugo and the freeholder via the managing agents eventually agreed on an amount of £5,500 . If the lease had dropped below eighty years, the sum would have escalated by a minimum £1,075.
In 2012 we were e-mailed by Dr F Allen who, having completed a garden flat in Victoria Park in May 2005. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar homes in Victoria Park with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 collected quarterly. The lease came to a finish in 2087. Taking into account 61 years outstanding we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including professional charges.
Last Autumn we were called by Dr V Thomas , who moved into a studio apartment in Victoria Park in February 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Victoria Park with a long lease were valued about £166,800. The mid-range ground rent payable was £50 collected quarterly. The lease terminated in 2076. Given that there were 50 years left we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus costs.