When it comes to residential leasehold property in Beckton, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years left. Leasehold owners in Beckton with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has less than eighty years outstanding, under the relevant Act the freeholder can calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Beckton with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Beckton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Beckton valuers.
Adam owned a studio flat in Beckton being marketed with a lease of a little over fifty eight years unexpired. Adam on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam procured expert legal guidance and secured satisfactory resolution informally and sell the property.
In 2011 we were contacted by Ms T Fournier who, having bought a first floor apartment in Beckton in October 2008. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar flats in Beckton with an extended lease were valued around £168,800. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish in 2080. Taking into account 55 years left we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Beckton flat 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 related to 1 flat. The unexpired term was 69.77 years.