Main reasons to start your Hackney lease extension

Top reasons for lease extension now:

A Hackney lease depreciates with the years remaining on the lease.

Unfortunately that a Hackney residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Hackney property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Hackney will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.

Hackney property with a lease extension has roughly the same value as a freehold

Leasehold premises in Hackney with over 100 years remaining on the lease are often regarded as a ‘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 service charges justify it.

Mortgage lenders may not issue a mortgage with a short lease

Many mortgage companies require a lengthy amount of time left on any leasehold property before they will contemplate lending on it. Regardless of whether you need a mortgage, you should keep in mind that it is likely that someone wanting to purchase your property in the future might well do, so in the event that they can't get a mortgage, then the market price of your property will likely suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to grant a mortgage on

Why use us for your lease extension in Hackney?

Engaging our service gives you better control over the value of your Hackney leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Hackney Lease Extension Example Cases:

John, Hackney, London,

John owned a high value apartment in Hackney on the market with a lease of fraction over 72 years left. John on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were John to invoke his statutory right. John obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.

Hackney case:

Ms Amy Miller completed a recently refurbished apartment in Hackney in November 1996. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar properties in Hackney with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 billed monthly. The lease elapsed on 3 May 2079. Given that there were 53 years left we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.