The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Beckton may extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before delaying your Beckton lease extension. Putting off that expense today simply escalates the premium you will eventually have to pay to extend the lease.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Virgin |
Retaining our service gives you enhanced control over the value of your Beckton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold proprietor of a conversion flat in Beckton on the market with a lease of a little over 59 years left. Jacob informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last Winter we were e-mailed by Mr Elijah Allen , who owned a basement flat in Beckton in April 2007. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparative residencies in Beckton with an extended lease were worth £173,800. The average amount of ground rent was £65 billed monthly. The lease lapsed in 2081. Given that there were 55 years remaining we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus professional charges.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired term as at the valuation date was 69.77 years.