The market value of a leasehold property in East Beckton is impacted by how long the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded prior to the eighty year threshold. Current legislation enables East Beckton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in East Beckton with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works | |
| Yorkshire Building Society |
Retaining our service gives 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Archie, came precariously close to the eighty-year threshold with the lease on his purpose- built apartment in East Beckton. In buying his property two decades ago, the unexpired term was of no concern. by good luck, he noticed he needed to take steps soon on a lease extension. Archie was able to extend his lease just under the wire in January. Archie and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If the lease had fallen to less than 80 years, the premium would have increased by a minimum £900.
Last Summer we were phoned by Dr Isabel Anderson , who purchased a first floor flat in East Beckton in October 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable flats in East Beckton with a long lease were in the region of £264,000. The average amount of ground rent was £60 collected yearly. The lease expired on 10 July 2079. Taking into account 53 years outstanding we calculated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including fees.
An example of a Lease Extension decision 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 related to 1 flat. The remaining number of years on the lease was 69.77 years.