On the balance of probabilities where you own a flat in Victoria Docks you actually own a long leasehold interest over your property
Leasehold premises in Victoria Docks with over one hundred years outstanding 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 purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Victoria Docks leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Rory, came very close to the eighty-year threshold with the lease on his one bedroom apartment in Victoria Docks. In buying his property two decades ago, the length of the lease was of little relevance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Rory extended the lease just ahead of time in September. Rory and the freeholder subsequently settled on the final figure of £5,500 . If he not met the deadline, the sum would have escalated by at least £1,000.
Mr and Mrs. R Gunderson acquired a purpose-built flat in Victoria Docks in May 1997. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Victoria Docks with a long lease were worth £208,600. The mid-range ground rent payable was £60 collected annually. The lease expired in 2082. Considering the 57 years left we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.
An example of a Lease Extension case for a Victoria Docks flat is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case was in relation to 1 flat. The unexpired lease term was 69.77 years.