The value of Hackney leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
Leasehold residencies in Hackney with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
|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.|
|Halifax|| Minimum 70 years from the date of the mortgage.|
|Lloyds TSB Scotland|| Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|National Westminster Bank|| Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Lease extensions in Hackney can be a difficult process. We recommend you secure guidance from a conveyancer 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 Hackney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Nathaniel, started to get close to the 80-year mark with the lease on his leasehold apartment in Hackney. In buying his flat two decades ago, the unexpired term was of minimal significance. Luckily, he realised he would imminently be paying an escalated premium for a lease extension. Nathaniel extended the lease at the eleventh hour in August. Nathaniel and the freeholder via the management company ultimately settled on a premium of £6,000 . If the lease had slipped below 80 years, the premium would have escalated by at least £975.
Last Autumn we were e-mailed by Mr Jayden Ward , who was assigned a lease of a purpose-built flat in Hackney in March 2006. The question was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Hackney with a long lease were worth £205,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed in 2100. Having 79 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
An example of a Freehold Enfranchisement case for a Hackney flat 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 unexpired term was 90 (or thereabouts).