Why you should start your West Beckton lease extension

Why you should commence your West Beckton lease extension today:

A West Beckton lease depreciates with the years remaining on the lease.

Unfortunately that a West Beckton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the West Beckton property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in West Beckton will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.

An extended lease has roughly the same value as a freehold

Leasehold properties in West Beckton with over 100 years outstanding 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Lending institutions will not grant a mortgage with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our West Beckton lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in West Beckton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Beckton valuers.

West Beckton Lease Extension Example Cases:

Mason, West Beckton, London,

Mason owned a studio flat in West Beckton on the market with a lease of fraction over 61 years remaining. Mason informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Mason to exercise his statutory right. Mason obtained expert legal guidance and secured an acceptable deal informally and sell the flat.

West Beckton case:

Mrs V Edwards was assigned a lease of a newly refurbished apartment in West Beckton in October 2009. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar homes in West Beckton with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 billed per annum. The lease end date was in 2093. Given that there were 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of legals.