With a domestic leasehold property in Victoria Dock, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Anyone in Victoria Dock with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. When a lease has under eighty years outstanding, under the current statute the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Victoria Dock can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Victoria Dock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Ryan, started to get close to the 80-year threshold with the lease on his leasehold flat in Victoria Dock. Having bought his flat two decades ago, the lease term was of little relevance. Thankfully, he realised he would soon be paying an inflated amount for a lease extension. Ryan arranged for a lease extension just in the nick of time last September. Ryan and the freeholder via the managing agents eventually settled on an amount of £6,000 . If he had missed the deadline, the price would have gone up by a minimum £950.
In 2013 we were contacted by Mr and Mrs. C Nelson who, having took over the lease of a basement flat in Victoria Dock in August 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical premises in Victoria Dock with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 invoiced annually. The lease ran out in 2101. Taking into account 76 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Last Summer we were called by Mr and Mrs. I Martin , who acquired a newly refurbished flat in Victoria Dock in August 2012. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Identical properties in Victoria Dock with a long lease were valued about £252,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease termination date was on 13 May 2090. Considering the 65 years left we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of fees.