When it comes to domestic leasehold property in Victoria Park, you are actually purchasing a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are fewer than 80 years remaining. Anyone in Victoria Park with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has below 80 years left, under the relevant statute the landlord can calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Victoria Park can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 dealing with 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.
Matthew owned a 2 bedroom flat in Victoria Park on the market with a lease of just over fifty eight years outstanding. Matthew on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Matthew to exercise his statutory right. Matthew obtained expert advice and secured satisfactory deal informally and readily saleable.
Mr and Mrs. D Bailey owned a one bedroom apartment in Victoria Park in July 2012. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar residencies in Victoria Park with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease elapsed in 2094. Having 68 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
Last year we were contacted by Mr R Díaz , who owned a one bedroom flat in Victoria Park in May 2004. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative residencies in Victoria Park with a long lease were worth £208,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease concluded on 21 July 2083. Considering the 57 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.