There is no doubt about it a leasehold flat or house in West Beckton is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in West Beckton will meet the qualifying criteria; that being said a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in West Beckton,the lease extension lawyers 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.
In recent months Benjamin, started to get close to the eighty-year mark with the lease on his purpose- built apartment in West Beckton. In buying his flat two decades ago, the lease term was of no concern. Thankfully, he became aware that he needed to take action soon on a lease extension. Benjamin extended the lease just in the nick of time in June. Benjamin and the landlord eventually agreed on sum of £6,000 . If he not met the deadline, the amount would have increased by a minimum £900.
Mr and Mrs. M Bennett bought a basement flat in West Beckton in March 1996. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable premises in West Beckton with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 collected annually. The lease lapsed in 2081. Considering the 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including expenses.
An example of a Lease Extension case 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.