The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Haggerston may extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Haggerston lease extension. Postponing the costs today simply increases the price you will eventually have to pay for a lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Cameron owned a studio apartment in Haggerston on the market with a lease of a little over 59 years unexpired. Cameron on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Cameron to exercise his statutory right. Cameron procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last Summer we were called by Ms H Parker , who moved into a recently refurbished flat in Haggerston in October 2002. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Haggerston with an extended lease were in the region of £267,600. The average ground rent payable was £65 collected every twelve months. The lease terminated on 12 March 2093. Considering the 67 years remaining we approximated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 not including legals.
An example of a Lease Extension decision for a Haggerston residence 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 affected 2 flats. The unexpired term was 72.39 years.