West Beckton leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in West Beckton will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in West Beckton with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 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.
Sam owned a 2 bedroom flat in West Beckton on the market with a lease of fraction over 61 years unexpired. Sam informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Sam to invoke his statutory right. Sam procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last month we were called by Dr Elijah Bonnet , who completed a recently refurbished apartment in West Beckton in January 2009. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable premises in West Beckton with a long lease were in the region of £174,200. The average amount of ground rent was £55 collected monthly. The lease finished in 2077. Considering the 51 years unexpired we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
An example of a Lease Extension case for a West Beckton premises 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 term was 69.77 years.