It’s a harsh truth that a Haggerston residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Haggerston property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Haggerston will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold residencies in Haggerston with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax |
Lease extensions in Haggerston can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Haggerston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Aiden, came dangerously near to the 80-year mark with the lease on his studio apartment in Haggerston. In buying his home two decades ago, the length of the lease was of minimal concern. Fortunately, he recognised he would imminently be paying an escalated premium for a lease extension. Aiden arranged for a lease extension just under the wire last June. Aiden and the freeholder via the management company ultimately settled on an amount of £5,500 . If the lease had dipped below 80 years, the premium would have escalated by at least £1,100.
In 2011 we were called by Mr and Mrs. K Moreau who, having took over the lease of a ground floor apartment in Haggerston in May 1997. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Haggerston with a long lease were valued about £181,600. The mid-range ground rent payable was £55 invoiced annually. The lease terminated in 2078. Given that there were 52 years remaining we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of fees.
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 related to 2 flats. The number of years remaining on the existing lease(s) was 72.39 years.