There is no doubt about it a leasehold property in Hoxton is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a stage 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 rational as to why you should consider extending sooner than later. The majority of flat owners in Hoxton will meet the qualifying criteria; that being said a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Hoxton with more than 100 years outstanding 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Hoxton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hoxton valuers.
Last Spring Alexander, started to get close to the eighty-year mark with the lease on his first floor apartment in Hoxton. In buying his home two decades ago, the lease term was of minimal concern. As luck would have it, he realised he would soon be paying way over the odds for a lease extension. Alexander extended the lease just in the nick of time in April. Alexander and the freeholder eventually agreed on a premium of £5,000 . If the lease had fallen lower than eighty years, the premium would have increased by at least £875.
Mr and Mrs. T Alexander acquired a purpose-built apartment in Hoxton in August 1996. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable homes in Hoxton with 100 year plus lease were valued about £252,800. The mid-range ground rent payable was £65 billed every twelve months. The lease termination date was in 2090. Taking into account 65 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus expenses.
An example of a Lease Extension decision for a Hoxton 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 lease term was 72.39 years.