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 gets more expensive. It is the case that most Victoria Park tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Victoria Park you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Victoria Park with in excess of 100 years remaining 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 upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
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.
Following protracted correspondence with the landlord of her two bedroom flat in Victoria Park, Isabelle started the lease extension process as the eighty year mark was rapidly coming. The legal work was concluded in May 2015. The freeholder’s fees were kept to an absolute minimum.
Last month we were approach by Mr and Mrs. F Michel , who moved into a purpose-built flat in Victoria Park in June 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Victoria Park with a long lease were valued about £290,000. The average ground rent payable was £45 collected annually. The lease expired in 2099. Taking into account 73 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
Last Winter we were called by Mr and Mrs. L Pérez , who owned a one bedroom apartment in Victoria Park in August 1997. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable residencies in Victoria Park with a long lease were worth £235,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease elapsed on 7 January 2088. Considering the 62 years left we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of fees.