It’s an underpublicised truth that a West Beckton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the West Beckton property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in West Beckton will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society |
Lease extensions in West Beckton can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring West Beckton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Joseph, came dangerously near to the eighty-year threshold with the lease on his ground floor apartment in West Beckton. Having bought his home twenty years previously, the length of the lease was of minimal relevance. Luckily, he noticed he would soon be paying an inflated amount for Extending the lease. Joseph was able to extend his lease just under the wire last September. Joseph and the freeholder in the end agreed on sum of £5,500 . If the lease had gone below eighty years, the premium would have gone up by at least £1,100.
In 2011 we were contacted by Mr Mason Rogers who, having completed a one bedroom apartment in West Beckton in November 2005. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparative homes in West Beckton with an extended lease were worth £189,000. The average amount of ground rent was £55 collected every twelve months. The lease lapsed in 2079. Taking into account 53 years unexpired we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.
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 related to 1 flat. The unexpired term was 69.77 years.