Unfortunately that a Beckton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Beckton property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of 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 Beckton will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Beckton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beckton valuers.
Off the back of lengthy discussions with the landlord of her studio apartment in Beckton, Alisha commenced the lease extension process as the 80 year deadline was rapidly coming. The lease extension was finalised in August 2012. The freeholder’s costs were kept to an absolute minimum.
Last September we were contacted by Dr R Ali , who purchased a first floor apartment in Beckton in August 2007. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Beckton with an extended lease were worth £280,000. The mid-range ground rent payable was £55 collected quarterly. The lease finished in 2104. Taking into account 79 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
An example of a Lease Extension case for a 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 related to 1 flat. The unexpired lease term was 69.77 years.