The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Hoxton have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Hoxton lease extension. Postponing the costs now simply increases the amount you will eventually be required to pay to extend the lease.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Hoxton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jacob, came very close to the 80-year mark with the lease on his purpose- built flat in Hoxton. In buying his home two decades ago, the length of the lease was of minimal bearing. by good luck, he recognised he needed to take action soon on Extending the lease. Jacob extended the lease just in the nick of time in September. Jacob and the freeholder ultimately agreed on an amount of £6,000 . If he had missed the deadline, the price would have gone up by a minimum £1,100.
Last year we were called by Mrs E Allen , who bought a first floor flat in Hoxton in July 2001. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical flats in Hoxton with an extended lease were in the region of £166,800. The mid-range amount of ground rent was £50 collected per annum. The lease concluded in 2075. Given that there were 50 years left we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.
An example of a Lease Extension case for a Hoxton premises 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 as at the valuation date was 72.39 years.