Victoria Dock leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease dips below 80 years - otherwise a higher amount will be due. Leasehold owners in Victoria Dock will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging 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 decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luca was the the leasehold proprietor of a high value apartment in Victoria Dock on the market with a lease of a little over sixty years remaining. Luca on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. 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 doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Dr Y Davis bought a first floor flat in Victoria Dock in July 2009. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative flats in Victoria Dock with an extended lease were worth £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease elapsed on 2 March 2095. Having 70 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
In 2011 we were called by Mr and Mrs. M Leroy who, having completed a garden apartment in Victoria Dock in August 1996. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Similar premises in Victoria Dock with a long lease were worth £218,400. The mid-range ground rent payable was £60 billed annually. The lease came to a finish on 24 February 2084. Given that there were 59 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus expenses.