Main reasons to commence your Becontree lease extension

Top reasons for lease extension now:

A Becontree leasehold property depreciates with the years remaining on the lease.

For anyone whose Becontree property is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.

Becontree property with a lease extension is almost the same value as a freehold

Leasehold properties in Becontree with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Lending institutions may decide not to grant a mortgage with a short lease

Lending institutions have set criteria when lending monies secured on leasehold homes. Some will simply not lend at all once the residual lease term goes beneath a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than seventy years as acceptable security. In addition to this being important when selling, it is also relevant if you are seeking to remortgage your Becontree home.

What makes us experts in Becontree lease extensions?

The conveyancers that we work with undertake Becontree 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.

Becontree Lease Extension Example Cases:

Max, Becontree, London

In recent months Max, started to get near to the 80-year threshold with the lease on his first floor flat in Becontree. In buying his home 19 years previously, the length of the lease was of no interest. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Max was able to extend his lease just under the wire in January. Max and the freeholder ultimately settled on an amount of £5,500 . If the lease had dipped to less than 80 years, the sum would have gone up by at least £975.

Becontree case:

Last Autumn we were e-mailed by Mr D Bernard , who was assigned a lease of a studio apartment in Becontree in February 2011. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical premises in Becontree with a long lease were valued around £264,000. The mid-range ground rent payable was £60 billed every twelve months. The lease expired in 2079. Considering the 53 years unexpired we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of legals.