As the length of the unexpired term of a East Beckton residential lease lessens so does its value and therefore the value of your property. If the residual term has, more than 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner than later. Most flat owners in East Beckton will meet the qualifying criteria; however a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake 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.
Aarav owned a studio apartment in East Beckton being marketed with a lease of just over sixty years remaining. Aarav informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Aarav to invoke his statutory right. Aarav procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Dr K Leroy was assigned a lease of a ground floor flat in East Beckton in April 2006. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in East Beckton with an extended lease were in the region of £166,400. The average amount of ground rent was £60 billed monthly. The lease end date was in 2079. Having 54 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including costs.
An example of a Lease Extension case 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 affected 1 flat. The unexpired residue of the current lease was 69.77 years.