The market value of a leasehold property in Victoria Dock is impacted by how long the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be concluded well before the eighty year cut off point. Statute enables Victoria Dock qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Victoria Dock,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Victoria Dock valuers.
Trailing unsuccessful correspondence with the landlord of her one bedroom flat in Victoria Dock, Jennifer started the lease extension process just as her lease was nearing the critical 80-year mark. The transaction completed in April 2009. The freeholder’s charges were negotiated to about 500 pounds.
Dr Felix Phillips took over the lease of a one bedroom flat in Victoria Dock in April 2005. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar flats in Victoria Dock with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 collected every twelve months. The lease termination date was on 6 April 2098. Taking into account 74 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Mr and Mrs. Y Stewart purchased a one bedroom flat in Victoria Dock in October 2005. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Similar properties in Victoria Dock with a long lease were in the region of £248,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish on 8 June 2087. Taking into account 63 years outstanding we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus expenses.