With a long leasehold premises in Becontree, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Leasehold owners in Becontree with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. When the lease term has below 80 years remaining, under the current statute the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Becontree with in excess of 100 years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Skipton Building Society |
Lease extensions in Becontree can be a difficult process. We recommend you secure guidance from a lawyer and surveyor 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 a wealth of experience dealing with Becontree lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jasper was the the leasehold owner of a conversion apartment in Becontree on the market with a lease of a little over sixty years left. Jasper on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
Dr B Young moved into a first floor apartment in Becontree in August 2007. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Becontree with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease terminated on 18 January 2098. Having 72 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Becontree residence is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case related to 1 flat. The remaining number of years on the lease was 61.36 years.