Main reasons to start your Hackney lease extension

Why you should start your Hackney lease extension today:

A Hackney lease depreciates with the years remaining on the lease.

Unfortunately that a Hackney residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Hackney property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Most leasehold owners in Hackney will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Hackney with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies will not loan monies on a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are deemed to be deficient security.

Why use us for your lease extension in Hackney?

The conveyancers that we work with undertake Hackney lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Hackney Lease Extension Case Summaries:

Adam, Hackney, London,

Adam owned a 2 bedroom apartment in Hackney on the market with a lease of fraction over 59 years unexpired. Adam informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Adam to exercise his statutory right. Adam obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.

Hackney case:

Mr O Bennett was assigned a lease of a ground floor apartment in Hackney in January 2005. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparative properties in Hackney with 100 year plus lease were worth £210,000. The average ground rent payable was £50 billed quarterly. The lease finished in 2106. Considering the 80 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.