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Top reasons for Hackney lease extension

Why you should start your Hackney lease extension today:

A Hackney leasehold property depreciates with the years remaining on the lease.

The closer a domestic lease in Hackney gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Many flat owners in Hackney will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Hackney with over one hundred years remaining on the lease are often 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 upside in buying the freehold unless savings on ground rent and service charges warrant it.

Lenders may decide not to grant a mortgage with a short lease

Banks and Building Societies are less likely to grant a mortgage on a residential property in Hackney with a short lease. Many lenders simply refuse a mortgage on leases with under 75 years left.

Lender Requirement
Barclays plc Mortgage term plus 25 years
Birmingham Midshires Minimum 70 years from the date of the mortgage.
HSBC All Residential leasehold properties must have more than 30 years remaining on the lease beyond the term of the mortgage at the outset.

All Buy to Let leasehold properties must have more than 35 years remaining on the lease beyond the term of the mortgage at the outset.
Leeds Building Society 85 years remaing from the start of the mortgage.
Skipton Building Society 85 years from the date of completion of the mortgage

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

Lease extensions in Hackney can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 procuring Hackney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Hackney Lease Extension Case Summaries:

Nathaniel, Hackney, London,

Nathaniel owned a studio flat in Hackney on the market with a lease of fraction over 72 years outstanding. Nathaniel on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. 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 to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.

Hackney case:

In 2011 we were contacted by Mr Tyler Cox who, having owned a recently refurbished flat in Hackney in January 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Identical premises in Hackney with a long lease were worth £166,800. The mid-range amount of ground rent was £50 collected yearly. The lease ended on 23 March 2069. Having 50 years unexpired we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of legals.

Decision in Hackney

An example of a Freehold Enfranchisement matter before the tribunal 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 was in relation to 4 flats. The number of years remaining on the existing lease(s) was 90 (or thereabouts).