Beckton leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Beckton will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and formalities to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Beckton with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Beckton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Beckton valuers.
After protracted negotiations with the freeholder of her garden flat in Beckton, Eleanor commenced the lease extension process as the eighty year mark was fast nearing. The legal work was concluded in October 2005. The landlord’s charges were kept to an absolute minimum.
Last Winter we were approach by Mr and Mrs. O White , who was assigned a lease of a first floor flat in Beckton in March 1997. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable properties in Beckton with 100 year plus lease were in the region of £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease expired in 2081. Considering the 56 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The remaining number of years on the lease was 69.77 years.