Chances are that where you own a flat in Victoria Dock you actually own a long leasehold interest over your property
Leasehold residencies in Victoria Dock with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Victoria Dock,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Victoria Dock valuers.
Jake owned a conversion apartment in Victoria Dock on the market with a lease of a little over 59 years outstanding. Jake informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were e-mailed by Mr and Mrs. J Garcia who, having completed a one bedroom flat in Victoria Dock in March 2006. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Victoria Dock with a long lease were valued around £260,200. The mid-range amount of ground rent was £65 invoiced annually. The lease ended in 2091. Given that there were 66 years unexpired we calculated the premium to the landlord to extend the lease to be within £16,200 and £18,600 plus costs.
Last Summer we were e-mailed by Mrs H Taylor , who acquired a one bedroom apartment in Victoria Dock in July 2009. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Victoria Dock with 100 year plus lease were valued around £198,800. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded on 21 February 2080. Taking into account 55 years unexpired we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including expenses.