With a long leasehold premises in Becontree, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Leasehold owners in Becontree with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has fewer than eighty years remaining, under the current Act the freeholder is entitled to calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Becontree with in excess of 100 years remaining on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Becontree,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 Becontree valuers.
Two years ago John, came critically near to the eighty-year mark with the lease on his studio apartment in Becontree. Having purchased his home two decades ago, the unexpired term was of no significance. Luckily, he realised he needed to take action soon on a lease extension. John extended the lease at the eleventh hour in March. John and the freeholder eventually settled on sum of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £1,050.
Last January we were e-mailed by Dr Caitlin Moore , who acquired a ground floor apartment in Becontree in October 2010. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Becontree with a long lease were worth £254,200. The average ground rent payable was £60 invoiced per annum. The lease expired on 16 May 2076. Given that there were 51 years left we approximated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 plus expenses.
An example of a Lease Extension decision for a Becontree premises 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 affected 1 flat. The number of years remaining on the existing lease(s) was 61.36 years.