Main reasons to commence your Hackney lease extension

Main reasons to commence your Hackney lease extension today:

Increase your lease and increase your Hackney property value

With a domestic leasehold property in Hackney, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years remaining. Leasehold owners in Hackney with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has under 80 years outstanding, under the current statute the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.

Lending institutions may decide not to grant a mortgage with a short lease

Most banks and building societies insist on a lengthy amount of time left on a leasehold property before they will contemplate lending on it. Regardless of whether you need a mortgage, you should be conscious that it is reasonable to assume that someone intending to acquire your property in the future might well do, so where they can't obtain a mortgage, then the value of your property will likely suffer. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to lend on

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

Regardless of whether you are a tenant or a freeholder in Hackney,the lease extension experts that we work with will always be willing 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.

Hackney Lease Extension Example Cases:

Andrew, Hackney, London

18 months ago Andrew, came critically close to the eighty-year threshold with the lease on his garden flat in Hackney. Having bought his home twenty years ago, the unexpired term was of no relevance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Andrew was able to extend his lease at the eleventh hour last June. Andrew and the freeholder ultimately settled on a premium of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,025.

Hackney case:

Mrs Shannon White completed a one bedroom apartment in Hackney in November 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical flats in Hackney with a long lease were in the region of £250,400. The average ground rent payable was £65 collected quarterly. The lease came to a finish on 28 March 2090. Taking into account 64 years outstanding we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus expenses.