Main reasons to commence your Hackney lease extension

Why you should commence your Hackney lease extension today:

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

The market value of a leasehold property in Hackney depends on how long the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed in advance of the eighty year cut off point. Leasehold Reform legislation entitles Hackney qualifying lessees to an additional term of 90 years in addition to the existing term, at a nominal rent (no ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold 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 premises will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become jittery at around 75 years. This may cause difficulties once you need to dispose of or refinance your flat as it will be practically unmortgageable. You may have no imminent desire to sell but when you do your buyer will have to hold off for 2 years before they can commence the legal procedures for an extension to the lease.

Why use us for your lease extension in Hackney?

Irrespective of whether you are a tenant or a freeholder in Hackney,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 Hackney valuers.

Hackney Lease Extension Example Cases:

John, Hackney, London

Half a year ago John, started to get close to the eighty-year mark with the lease on his studio flat in Hackney. In buying his flat twenty years previously, the unexpired term was of no concern. Fortunately, he realised he needed to take action soon on a lease extension. John was able to extend his lease just ahead of time in March. John and the landlord eventually agreed on the final figure of £5,500 . If the lease had dipped below 80 years, the premium would have escalated by at least £1,075.

Hackney case:

In 2012 we were e-mailed by Dr N Mitchell who, having moved into a basement flat in Hackney in March 2005. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Identical flats in Hackney with an extended lease were valued around £290,000. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2098. Given that there were 72 years remaining we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including legals.