Why you should start your Beckton lease extension

Why you should start your Beckton lease extension today:

A Beckton leasehold property depreciates with the years remaining on the lease.

It’s a harsh truth that a Beckton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Beckton property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Most flat owners in Beckton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

An extended lease is almost the same value as a freehold

Leasehold residencies in Beckton with more than 100 years left on the lease are sometimes referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not loan monies with a short lease

Lenders are tightening their criteria and a meaningful number now want flats to have a minimum of sixty if not seventy years left at the expiry of the mortgage. As a number of flats in Beckton were built in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.

Why use us for your lease extension in Beckton?

Regardless of whether you are a tenant or a landlord in Beckton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beckton valuers.

Beckton Lease Extension Example Cases:

Max, Beckton, London

Half a year ago Max, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Beckton. Having bought his home two decades ago, the lease term was of no bearing. Fortunately, he noticed he needed to take action soon on Extending the lease. Max arranged for a lease extension just under the wire last January. Max and the freeholder subsequently settled on a premium of £5,500 . If the lease had slipped to less than eighty years, the price would have escalated by at least £1,125.

Beckton case:

In 2011 we were contacted by Dr Cameron Walker who, having acquired a garden apartment in Beckton in March 2008. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar premises in Beckton with an extended lease were valued about £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease terminated on 16 July 2096. Taking into account 70 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.