The market value of a leasehold property in West Beckton depends on how long the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when a lease still has 82 years to run so that all matters can be addressed prior to the 80 year cut off point. Current legislation entitles West Beckton qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left 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 sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in West Beckton with more than 100 years remaining on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Retaining our service will provide you increased control over the value of your West Beckton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Eliot owned a studio flat in West Beckton being marketed with a lease of just over fifty eight years remaining. Eliot on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert advice and secured satisfactory deal informally and sell the property.
Last Christmas we were e-mailed by Mr and Mrs. I Bonnet , who purchased a studio flat in West Beckton in November 2009. The question was if we could estimate the price would likely be to extend the lease by ninety years. Comparable residencies in West Beckton with an extended lease were worth £300,000. The average amount of ground rent was £50 collected annually. The lease finished in 2102. Having 76 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
An example of a Lease Extension matter before the tribunal for a West 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 affected 1 flat. The unexpired lease term was 69.77 years.