Main reasons to commence your Hackney lease extension
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Why you should commence your Hackney lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/hackney">Hackney</a> property value </h4>
<p> Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Hackney. Inevitably, the length of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Hackney have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give due deliberation before delaying your Hackney lease extension. Putting off that expense now likely increases the price you will ultimately have to pay to extend your lease <h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
<h4>Banks and Building Societies may not loan monies with a short lease</h4> Banks and building societies are really clamping down as regards to homes in Hackney with short leases. For example you might discover that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus narrowing your market.
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Coventry Building Society</td>
<td> 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.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4> Get in touch with one of our Hackney lease extension solicitors or enfranchisement solicitors
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<p> Retaining our service gives you better control over the value of your Hackney leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell.
The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Hackney Lease Extension Case Summaries:
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<h5> Finn, Hackney, London,</h5>
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Finn owned a 2 bedroom flat in Hackney being marketed with a lease of a little over 72 years remaining. Finn informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
<h5>Hackney case:</h5>
<p> Dr Max Alexander was assigned a lease of a basement apartment in Hackney in August 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable properties in Hackney with an extended lease were in the region of £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease end date was on 5 June 2104. Taking into account 78 years remaining we calculated the premium to the landlord to extend the lease to be between £7,600 and £8,800 not including fees.
<div> <h5>Decision in Hackney</h5>
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An example of a Freehold Enfranchisement case for a Hackney flat is
150 Amhurst Road in December 2013. The tribunal concluded that the premium to be paid by the applicant for the enfranchisement of the subject property was £43,500.
This case affected 4 flats. The remaining number of years on the lease was 90 (or thereabouts).
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