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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in East Beckton,the lease extension lawyers 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 East Beckton valuers.
Subsequent to protracted negotiations with the freeholder of her ground floor apartment in East Beckton, Jordan started the lease extension process as the eighty year threshold was fast coming. The legal work was concluded in January 2010. The freeholder’s fees were negotiated to under 550 GBP.
Last Summer we were approach by Mr V Rodríguez , who acquired a studio apartment in East Beckton in May 1996. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in East Beckton with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced annually. The lease ran out on 18 January 2096. Taking into account 71 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
An example of a Lease Extension decision for a East Beckton residence 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 lease term was 69.77 years.