Hackney leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Hackney enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hackney you should check if your lease has between seventy and 90 years remaining. There are good reasons why a Hackney flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|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.|
|Lloyds TSB Scotland|| Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|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
|TSB||Mortgage term plus 30 years subject to an overall minimum term of 70 years|
Engaging our service will provide you better control over the value of your Hackney leasehold, as your property will be more valuable and marketable in respect of lease length should you wish 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.
Jamie owned a high value apartment in Hackney on the market with a lease of a little over 72 years unexpired. Jamie informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Last Winter we were e-mailed by Dr O Hill , who acquired a first floor apartment in Hackney in September 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Hackney with an extended lease were in the region of £267,600. The average amount of ground rent was £65 billed yearly. The lease elapsed on 15 October 2086. Given that there were 67 years remaining we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus expenses.
An example of a Freehold Enfranchisement case for a Hackney property 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 was 90 (or thereabouts).