Hoxton leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Hoxton will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain situations you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Hoxton with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Hoxton,the lease extension experts 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.
Half a year ago Caleb, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Hoxton. In buying his home 18 years ago, the length of the lease was of little interest. Luckily, he became aware that he would soon be paying an escalated premium for Extending the lease. Caleb was able to extend his lease at the eleventh hour last March. Caleb and the landlord in the end agreed on the final figure of £6,000 . If the lease had dipped to less than 80 years, the figure would have escalated by at least £850.
Mrs Isobel Thomas took over the lease of a recently refurbished apartment in Hoxton in January 2012. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Identical properties in Hoxton with a long lease were valued around £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ended in 2095. Considering the 70 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
An example of a Lease Extension matter before the tribunal 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 related to 2 flats. The unexpired term was 72.39 years.