Victoria Docks residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Victoria Docks,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Victoria Docks valuers.
Last year Isaac, came perilously near to the 80-year threshold with the lease on his basement apartment in Victoria Docks. In buying his home 19 years ago, the length of the lease was of little interest. Luckily, he recognised he would soon be paying way over the odds for a lease extension. Isaac was able to extend his lease just under the wire last April. Isaac and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,150.
In 2011 we were phoned by Dr J Edwards who, having took over the lease of a one bedroom flat in Victoria Docks in July 2008. We are asked if we could approximate the premium could be to extend the lease by ninety years. Identical residencies in Victoria Docks with an extended lease were worth £171,800. The mid-range amount of ground rent was £55 billed monthly. The lease end date was on 11 May 2074. Taking into account 50 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.
An example of a Lease Extension case for a Victoria Docks property 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 unexpired residue of the current lease was 69.77 years.