When it comes to long leasehold property in Haggerston, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Residents in Haggerston with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has fewer than 80 years outstanding, under the current Act the landlord is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Haggerston leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her ground floor apartment in Haggerston, Charlotte initiated the lease extension process as the eighty year threshold was swiftly nearing. The legal work completed in February 2011. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. T Leroy was assigned a lease of a purpose-built flat in Haggerston in February 2009. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Similar homes in Haggerston with an extended lease were worth £290,000. The average amount of ground rent was £45 collected annually. The lease elapsed on 22 February 2097. Considering the 72 years outstanding we calculated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of 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 unexpired lease term was 72.39 years.