The market value of a leasehold property in Hackney depends on how long the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year threshold. Current legislation entitles Hackney qualifying lessees to an additional term of 90 years on top of the remaining term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Hackney with over 100 years left 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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| Virgin | 85 years at the time of the mortgage application. |
Regardless of whether you are a tenant or a landlord in Hackney,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hackney valuers.
Trailing unsuccessful discussions with the landlord of her ground floor apartment in Hackney, Natasha initiated the lease extension process as the eighty year mark was rapidly approaching. The transaction completed in May 2008. The freeholder’s fees were restricted to under 450 pounds.
Last Winter we were e-mailed by Mr and Mrs. E Morel , who acquired a garden flat in Hackney in September 2008. The question was if we could approximate the price would be for a 90 year lease extension. Identical premises in Hackney with 100 year plus lease were valued about £280,000. The average ground rent payable was £45 billed per annum. The lease terminated on 23 November 2088. Having 70 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Hackney residence 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 affected 4 flats. The unexpired term as at the valuation date was 90 (or thereabouts).