The re-sale value of a leasehold property in Beckton depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be addressed ahead of the eighty year threshold. Statute enables Beckton qualifying lessees to an additional term of 90 years on top of the existing term, at a notional rent (no ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging 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 conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jamie, came dangerously near to the 80-year mark with the lease on his garden apartment in Beckton. Having purchased his property two decades ago, the unexpired term was of minimal relevance. Luckily, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Jamie arranged for a lease extension just under the wire last March. Jamie and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £850.
In 2012 we were called by Dr A Gray who, having was assigned a lease of a garden flat in Beckton in April 1997. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Beckton with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 billed yearly. The lease terminated on 16 June 2086. Having 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 not including professional charges.
An example of a Lease Extension decision for a Beckton premises 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 lease term was 69.77 years.