On the balance of probabilities where you own a flat in East Beckton you actually own a long leasehold interest over your property
Leasehold residencies in East Beckton with in excess of 100 years unexpired on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Last October Isaac, came precariously close to the eighty-year mark with the lease on his two bedroom apartment in East Beckton. Having bought his property twenty years previously, the length of the lease was of no importance. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Isaac was able to extend his lease just under the wire last September. Isaac and the freeholder eventually settled on the final figure of £6,000 . If the lease had slid below eighty years, the price would have escalated by a minimum £1,075.
Mrs Katherine Mitchell completed a one bedroom flat in East Beckton in May 1999. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical residencies in East Beckton with a long lease were valued around £200,800. The average ground rent payable was £65 invoiced per annum. The lease came to a finish in 2085. Having 60 years left we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus fees.
An example of a Lease Extension matter before the tribunal for a East Beckton flat 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 number of years remaining on the existing lease(s) was 69.77 years.