Unfortunately that a West Beckton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the West Beckton property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in West Beckton will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a landlord in West Beckton,the lease extension experts 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 West Beckton valuers.
Off the back of lengthy discussions with the freeholder of her one bedroom flat in West Beckton, Elizabeth commenced the lease extension process as the 80 year threshold was fast coming. The lease extension was concluded in January 2011. The freeholder’s charges were restricted to approximately four hundred GBP.
In 2012 we were e-mailed by Mr and Mrs. M Campbell who, having was assigned a lease of a basement flat in West Beckton in April 1996. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Similar flats in West Beckton with an extended lease were in the region of £280,000. The average amount of ground rent was £45 invoiced monthly. The lease elapsed on 15 July 2093. Having 69 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
An example of a Lease Extension matter before the tribunal for a West 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 was in relation to 1 flat. The unexpired residue of the current lease was 69.77 years.