Victoria Docks leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher amount will be due. Flat owners in Victoria Docks will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred 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 |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives 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 want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jason, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Victoria Docks. In buying his home twenty years ago, the lease term was of no importance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Jason extended the lease just under the wire last May. Jason and the landlord who owned the flat above in the end settled on sum of £5,000 . If he not met the deadline, the price would have become more costly by a minimum £1,075.
Last month we were approach by Mr and Mrs. W Garcia , who took over the lease of a garden flat in Victoria Docks in June 2008. The question was if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Victoria Docks with a long lease were valued about £216,000. The average ground rent payable was £60 collected yearly. The lease elapsed in 2084. Having 58 years remaining we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.
An example of a Lease Extension decision for a Victoria Docks premises 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 affected 1 flat. The number of years remaining on the existing lease(s) was 69.77 years.