Why you should commence your Victoria Dock lease extension

Top reasons for lease extension now:

Increase your lease and increase your Victoria Dock property value

The market value of a leasehold property in Victoria Dock depends on how many years the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed ahead of the eighty year cut off point. Current legislation enables Victoria Dock qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (no ground rent). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Banks and Building Societies will not grant a mortgage on a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are regarded as unacceptable for lending purposes.

What makes us experts in Victoria Dock lease extensions?

Irrespective of whether you are a tenant or a landlord in Victoria Dock,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Victoria Dock valuers.

Victoria Dock Lease Extension Case Summaries:

Aaron, Victoria Dock, East Yorkshire,

Aaron owned a high value flat in Victoria Dock on the market with a lease of fraction over 59 years left. Aaron on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.

Victoria Dock case:

Last August we were approach by Mr Finn Fournier , who bought a purpose-built flat in Victoria Dock in July 2003. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Similar residencies in Victoria Dock with an extended lease were worth £184,000. The mid-range ground rent payable was £55 billed per annum. The lease ran out in 2079. Considering the 53 years outstanding we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.

Victoria Dock case:

In 2011 we were contacted by Ms A Harris who, having was assigned a lease of a newly refurbished flat in Victoria Dock in April 2007. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable residencies in Victoria Dock with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected annually. The lease finished on 17 April 2099. Given that there were 73 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.