With a residential leasehold premises in Hoxton, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Hoxton with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When the lease term has fewer than eighty years remaining, under the current Act the landlord is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Hoxton with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Hoxton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hoxton valuers.
Off the back of lengthy negotiations with the freeholder of her one bedroom apartment in Hoxton, Olivia initiated the lease extension process as the 80 year deadline was quickly coming. The transaction was finalised in November 2011. The freeholder’s charges were restricted to a tad over five hundred GBP.
Mr and Mrs. M Moore took over the lease of a one bedroom apartment in Hoxton in May 2001. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable properties in Hoxton with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish on 4 June 2099. Given that there were 74 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension case for a Hoxton flat 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 unexpired term was 72.39 years.