The value of Victoria Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is below than 80 years
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Victoria Park can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Victoria Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the freeholder of her two bedroom apartment in Victoria Park, Daisy started the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction was finalised in January 2014. The freeholder’s charges were negotiated to about 700 pounds.
In 2014 we were approached by Ms Chantelle Rogers who, having purchased a first floor apartment in Victoria Park in June 1999. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative flats in Victoria Park with an extended lease were valued around £198,800. The average ground rent payable was £55 collected annually. The lease expired in 2081. Considering the 55 years remaining we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of professional charges.
Last May we were called by Dr C Sharif , who purchased a one bedroom apartment in Victoria Park in October 1999. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative homes in Victoria Park with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed yearly. The lease terminated in 2101. Given that there were 75 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.