There is no doubt about it a leasehold flat or house in Haggerston is a wasting asset as a result of the diminishing lease term. If the residual term has, over 125 years to run then this decrease may be fractional nevertheless 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 known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Haggerston will qualify for this right; however a conveyancing solicitor can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Haggerston with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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. |
Retaining our service will provide you increased control over the value of your Haggerston leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Evan, started to get close to the eighty-year mark with the lease on his two bedroom flat in Haggerston. In buying his property 19 years ago, the length of the lease was of little interest. As luck would have it, he became aware that he would imminently be paying way over the odds for Extending the lease. Evan extended the lease at the eleventh hour in September. Evan and the landlord eventually agreed on an amount of £5,000 . If the lease had fallen to less than eighty years, the price would have become more costly by a minimum £900.
Last Spring we were phoned by Dr Rachael Richardson , who owned a ground floor apartment in Haggerston in March 2011. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Identical flats in Haggerston with an extended lease were valued around £300,000. The average ground rent payable was £50 collected yearly. The lease lapsed in 2102. Taking into account 76 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
An example of a Lease Extension case for a Haggerston flat is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case was in relation to 2 flats. The number of years remaining on the existing lease(s) was 72.39 years.