Victoria Dock leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Victoria Dock will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Victoria Dock with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Victoria Dock,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Victoria Dock valuers.
Owen was the the leasehold proprietor of a conversion flat in Victoria Dock on the market with a lease of a little over fifty eight years left. Owen on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Owen to invoke his statutory right. Owen procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last Spring we were approach by Mrs Ashleigh Parker , who owned a purpose-built flat in Victoria Dock in November 1997. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable premises in Victoria Dock with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 collected yearly. The lease expiry date was on 7 June 2087. Taking into account 61 years unexpired we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including expenses.
Mr and Mrs. E Alexander was assigned a lease of a newly refurbished apartment in Victoria Dock in September 2000. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Similar flats in Victoria Dock with an extended lease were worth £166,800. The mid-range ground rent payable was £50 billed annually. The lease ended on 25 May 2076. Taking into account 50 years left we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 not including legals.