Main reasons to commence your Hackney lease extension

Why you should commence your Hackney lease extension today:

Increase your lease and increase your Hackney property value

Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Hackney. Clearly, the term of lease remaining reduces as time goes by. This is often ignored and only becomes a problem when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Hackney have the right to extend the lease for an additional 90 years in accordance with statute. You should give careful attention before delaying your Hackney lease extension. Holding off that expense now simply increases the price you will ultimately incur for a lease extension

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

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Nearly all banks and building societies insist on a lengthy amount of time left on any leasehold property before they will contemplate it as adequate security. Even if you don't require a mortgage, you should bear in mind that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of the property will likely suffer. In the last decade many banks and building societies have increased the required minimum lease length that they are prepared to grant a mortgage on

Get in touch with one of our Hackney lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with procure Hackney lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Hackney Lease Extension Example Cases:

Lucas, Hackney, London

In 2014 Lucas, came very close to the eighty-year threshold with the lease on his garden flat in Hackney. In buying his property twenty years ago, the lease term was of minimal interest. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Lucas extended the lease at the eleventh hour in June. Lucas and the freeholder via the management company eventually agreed on a premium of £6,000 . If the lease had dropped lower than 80 years, the sum would have become more exhorbitant by at least £1,075.

Hackney case:

Ms C Howard bought a first floor apartment in Hackney in May 2003. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical flats in Hackney with a long lease were worth £275,000. The mid-range ground rent payable was £65 collected every twelve months. The lease terminated on 20 September 2094. Taking into account 68 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.