Victoria Dock leases on domestic properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Victoria Dock will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with handle Victoria Dock lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Blake was the the leasehold owner of a high value flat in Victoria Dock being sold with a lease of just over 61 years remaining. Blake on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
Last Autumn we were e-mailed by Mr and Mrs. U García , who acquired a basement apartment in Victoria Dock in June 2009. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable residencies in Victoria Dock with 100 year plus lease were worth £248,000. The mid-range amount of ground rent was £65 billed yearly. The lease concluded in 2088. Considering the 63 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.
Last Spring we were phoned by Dr George Girard , who bought a first floor flat in Victoria Dock in September 1996. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable premises in Victoria Dock with a long lease were worth £184,000. The average amount of ground rent was £55 collected every twelve months. The lease concluded on 4 June 2078. Having 53 years outstanding we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including professional charges.