With a residential leasehold premises in Haggerston, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years remaining. Residents in Haggerston with a lease approaching 81 years unexpired should seriously think of extending it without delay. When the lease term has fewer than eighty years left, under the current legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Haggerston 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.
In the wake of 9 months of unsuccessful correspondence with the landlord of her two bedroom flat in Haggerston, Jessica initiated the lease extension process just as the lease was approaching the all-important eighty-year threshold. The transaction was finalised in September 2014. The landlord’s fees were restricted to approximately 550 pounds.
Last Autumn we were phoned by Mrs H Richardson , who owned a newly refurbished apartment in Haggerston in May 2003. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative premises in Haggerston with 100 year plus lease were in the region of £248,000. The average amount of ground rent was £65 collected quarterly. The lease came to a finish in 2089. Given that there were 63 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including legals.
An example of a Lease Extension case for a Haggerston property is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case was in relation to 2 flats. The unexpired term was 72.39 years.