When it comes to residential leasehold premises in Beckton, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than eighty years left. Leasehold owners in Beckton with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has less than 80 years outstanding, under the current Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Beckton leasehold, as your property will be more valuable and saleable in respect of lease length should you want 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.
During the course of the last few months Jamie, started to get near to the 80-year mark with the lease on his ground floor flat in Beckton. Having bought his property two decades ago, the lease term was of no concern. Fortunately, he realised he needed to take steps soon on Extending the lease. Jamie extended the lease at the eleventh hour in August. Jamie and the landlord who owned the flat above eventually settled on an amount of £5,500 . If the lease had descended lower than 80 years, the amount would have become more costly by at least £875.
Ms Rhiannon Williams owned a basement flat in Beckton in September 1998. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative properties in Beckton with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £60 collected per annum. The lease terminated on 23 March 2105. Given that there were 80 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
An example of a Lease Extension case 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 term was 69.77 years.