The value of Hoxton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is less than eighty years
Leasehold premises in Hoxton with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
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. |
Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
Yorkshire 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. |
Lease extensions in Hoxton can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 procuring Hoxton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Daniel, came dangerously close to the 80-year threshold with the lease on his two bedroom apartment in Hoxton. Having bought his property two decades ago, the length of the lease was of little interest. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Daniel arranged for a lease extension at the eleventh hour in May. Daniel and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had fallen below eighty years, the sum would have become more costly by at least £1,100.
In 2010 we were e-mailed by Mrs E Roux who, having completed a one bedroom flat in Hoxton in January 1998. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Hoxton with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced per annum. The lease lapsed in 2088. Given that there were 64 years as a residual term we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal 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.