Victoria Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Victoria Park enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Victoria Park you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Victoria Park leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold owner of a high value apartment in Victoria Park on the market with a lease of a few days over fifty eight years remaining. Henry informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Henry to invoke his statutory right. Henry procured expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2012 we were phoned by Dr O Clarke who, having purchased a garden apartment in Victoria Park in March 2003. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Victoria Park with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed every twelve months. The lease lapsed on 17 July 2098. Having 74 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
In 2010 we were e-mailed by Mr and Mrs. W Bailey who, having purchased a recently refurbished apartment in Victoria Park in June 2005. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Victoria Park with a long lease were worth £248,000. The average ground rent payable was £65 invoiced every twelve months. The lease terminated on 14 May 2087. Taking into account 63 years remaining we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.