Hoxton leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Hoxton will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain situations you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Hoxton with over 100 years unexpired 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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Hoxton can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Hoxton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aarav owned a high value flat in Hoxton on the market with a lease of a few days over sixty years remaining. Aarav on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2009 we were contacted by Mr and Mrs. E Scott who, having owned a purpose-built flat in Hoxton in May 2004. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Hoxton with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 collected yearly. The lease concluded on 25 April 2095. Given that there were 70 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
An example of a Lease Extension decision for a Hoxton property 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 term as at the valuation date was 72.39 years.