The market value of Victoria Dock leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than eighty years
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Using our service gives you better control over the value of your Victoria Dock leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jude was the the leasehold proprietor of a high value apartment in Victoria Dock on the market with a lease of a little over 61 years left. Jude informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Jude to invoke his statutory right. Jude obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Mr and Mrs. J Davies purchased a newly refurbished flat in Victoria Dock in May 2001. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative premises in Victoria Dock with an extended lease were valued about £216,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended on 14 February 2083. Having 58 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Last Autumn we were phoned by Dr Y Laurent , who was assigned a lease of a one bedroom flat in Victoria Dock in June 1998. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Victoria Dock with an extended lease were worth £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated on 16 February 2103. Having 78 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.