On the balance of probabilities if you own a flat in Haggerston you actually own a long leasehold interest over your property
Leasehold residencies in Haggerston with more than 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | 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 also be not less than 75 years 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 Haggerston can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
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 dealing with Haggerston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Austin was the the leasehold owner of a conversion flat in Haggerston being sold with a lease of just over 72 years remaining. Austin informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Spring we were phoned by Mr and Mrs. N Allen , who bought a one bedroom apartment in Haggerston in January 2000. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Similar flats in Haggerston with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 collected quarterly. The lease expired in 2079. Given that there were 54 years outstanding we calculated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of costs.
An example of a Lease Extension case for a Haggerston premises 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 related to 2 flats. The unexpired term as at the valuation date was 72.39 years.