Beckton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Beckton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Beckton you really ought to investigate if your lease has between seventy and ninety years left. There are good reasons why a Beckton leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Beckton can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Beckton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Blake, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Beckton. Having purchased his home 18 years previously, the lease term was of little relevance. Fortunately, he recognised he would soon be paying an escalated premium for Extending the lease. Blake arranged for a lease extension just under the wire last April. Blake and the freeholder ultimately agreed on a premium of £5,000 . If he had missed the deadline, the figure would have increased by at least £1,025.
In 2012 we were approached by Mrs M Moreau who, having was assigned a lease of a garden apartment in Beckton in January 1998. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Identical homes in Beckton with an extended lease were valued around £250,000. The mid-range ground rent payable was £50 billed yearly. The lease elapsed in 2094. Taking into account 68 years unexpired we calculated the premium to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of costs.
An example of a Lease Extension case for a 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 related to 1 flat. The unexpired term as at the valuation date was 69.77 years.