There is no doubt about it a leasehold flat or house in Hackney is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 125 years remaining then this decrease may be fractional however there will become a point in time when a lease has less than 80 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 sooner as opposed to later. The majority of flat owners in Hackney will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you are eligible 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.
Leasehold premises in Hackney with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hackney can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 Hackney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the landlord of her purpose-built flat in Hackney, Catherine started the lease extension process just as her lease was coming close to the critical eighty-year mark. The legal work completed in November 2008. The landlord’s charges were restricted to below 700 pounds.
In 2009 we were e-mailed by Dr Maisie Jackson who, having purchased a garden flat in Hackney in March 2010. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative properties in Hackney with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 billed quarterly. The lease ran out on 21 March 2097. Considering the 71 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
An example of a Freehold Enfranchisement case for a Hackney residence 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 was in relation to 4 flats. The unexpired term was 90 (or thereabouts).