It’s a harsh certainty that a Beckton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Beckton property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Beckton will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
The conveyancers that we work with handle Beckton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Felix owned a conversion flat in Beckton being sold with a lease of a few days over sixty years outstanding. Felix on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were contacted by Dr V Young who, having completed a purpose-built flat in Beckton in July 2008. The question was if we could estimate the price would be for a ninety year extension to my lease. Identical premises in Beckton with a long lease were in the region of £270,000. The average ground rent payable was £55 collected every twelve months. The lease lapsed on 27 August 2100. Taking into account 74 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
An example of a Lease Extension decision for a Beckton residence 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 residue of the current lease was 69.77 years.