When it comes to domestic leasehold premises in Hackney, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years remaining. Leasehold owners in Hackney with a lease approaching 81 years unexpired should seriously consider extending it without delay. When a lease has less than 80 years remaining, under the current statute the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Hackney with in excess of one hundred years outstanding 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 situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you better control over the value of your Hackney leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the landlord of her ground floor apartment in Hackney, Phoebe initiated the lease extension process just as her lease was approaching the critical eighty-year threshold. The transaction was concluded in June 2005. The landlord’s fees were kept to an absolute minimum.
Mrs Isabel Morris purchased a studio flat in Hackney in May 2000. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar homes in Hackney with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease concluded on 10 February 2105. Considering the 79 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
An example of a Freehold Enfranchisement decision for a Hackney premises is 150 Amhurst Road in December 2013. The tribunal concluded that the premium to be paid by the applicant for the enfranchisement of the subject property was £43,500. This case related to 4 flats. The number of years remaining on the existing lease(s) was 90 (or thereabouts).