Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in East Beckton. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in East Beckton have the legal entitlement to extend the lease for a further ninety years under legislation. Please give careful attention before putting off your East Beckton lease extension. Putting off that expense now only increases the price you will ultimately incur to extend your lease
Leasehold properties in East Beckton with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure East Beckton 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 lawyer we work with provide it.
Two years ago Matthew, started to get near to the 80-year mark with the lease on his studio apartment in East Beckton. Having bought his flat 19 years previously, the length of the lease was of no concern. As luck would have it, he became aware that he needed to take action soon on a lease extension. Matthew arranged for a lease extension just in the nick of time in June. Matthew and the freeholder via the managing agents eventually agreed on sum of £6,000 . If the lease had slid below eighty years, the price would have gone up by at least £1,000.
Last April we were e-mailed by Mr T King , who owned a basement flat in East Beckton in August 2011. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Comparable properties in East Beckton with an extended lease were in the region of £255,000. The average ground rent payable was £50 billed yearly. The lease ran out in 2096. Taking into account 71 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
An example of a Lease Extension case for a East Beckton premises 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 residue of the current lease was 69.77 years.