On the balance of probabilities where you own a flat in Beckton you actually own a long leasehold interest over your property
Leasehold residencies in Beckton with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Beckton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Joshua, came seriously close to the 80-year threshold with the lease on his leasehold apartment in Beckton. In buying his home two decades ago, the unexpired term was of little interest. Fortunately, he noticed he would imminently be paying an inflated amount for Extending the lease. Joshua arranged for a lease extension just in the nick of time last September. Joshua and the freeholder via the management company eventually agreed on sum of £6,000 . If the lease had slid to less than eighty years, the sum would have gone up by at least £900.
Dr E Bonnet was assigned a lease of a studio apartment in Beckton in May 1996. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical residencies in Beckton with a long lease were worth £285,000. The average amount of ground rent was £55 billed quarterly. The lease termination date was on 22 October 2105. Taking into account 79 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
An example of a Lease Extension case for a Beckton 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 term was 69.77 years.