The market value of East Beckton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than 80 years
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your East Beckton leasehold, as your property will be more valuable and marketable in relation to the 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.
Half a year ago Jackson, started to get near to the eighty-year threshold with the lease on his garden flat in East Beckton. Having bought his property two decades ago, the lease term was of no significance. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Jackson was able to extend his lease just in the nick of time in January. Jackson and the freeholder via the managing agents subsequently agreed on an amount of £6,000 . If the lease had gone lower than eighty years, the price would have escalated by a minimum £1,150.
Mrs Isobel Bennett took over the lease of a ground floor flat in East Beckton in August 2007. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable properties in East Beckton with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 billed monthly. The lease ended in 2081. Given that there were 56 years left we calculated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 plus fees.
An example of a Lease Extension decision for a East 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 was in relation to 1 flat. The unexpired term as at the valuation date was 69.77 years.