West Beckton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most West Beckton tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in West Beckton you would be well advised to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold properties in West Beckton with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced 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 want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jayden, started to get near to the 80-year mark with the lease on his first floor apartment in West Beckton. Having purchased his flat two decades ago, the unexpired term was of little relevance. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Jayden was able to extend his lease at the eleventh hour last August. Jayden and the freeholder eventually settled on sum of £6,000 . If he had missed the deadline, the price would have escalated by a minimum £1,100.
In 2013 we were approached by Mrs B Wilson who, having moved into a ground floor flat in West Beckton in May 2002. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in West Beckton with 100 year plus lease were worth £200,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed in 2102. Having 77 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
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 affected 1 flat. The unexpired residue of the current lease was 69.77 years.