When it comes to long leasehold property in East Beckton, you effectively rent 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 think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in East Beckton with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has below eighty years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in East Beckton with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in East Beckton can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with East Beckton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Michael, came critically near to the 80-year mark with the lease on his first floor apartment in East Beckton. Having purchased his flat 19 years previously, the length of the lease was of little relevance. Fortunately, he realised he would soon be paying way over the odds for a lease extension. Michael extended the lease at the eleventh hour last April. Michael and the landlord eventually settled on an amount of £6,000 . If the lease had descended to less than eighty years, the amount would have increased by at least £1,000.
In 2012 we were called by Dr M López who, having bought a purpose-built flat in East Beckton in September 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in East Beckton with 100 year plus lease were worth £208,200. The mid-range ground rent payable was £65 collected yearly. The lease ended in 2086. Having 61 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.
An example of a Lease Extension case for a East 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 was in relation to 1 flat. The unexpired residue of the current lease was 69.77 years.