The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Hoxton have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Please think carefully before delaying your Hoxton lease extension. Shelving the costs now simply escalates the amount you will ultimately be required to pay to extend the lease.
Leasehold residencies in Hoxton with more than 100 years outstanding 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 premises. 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Hoxton 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 conveyancing solicitor we work with provide it.
Alexander owned a 2 bedroom flat in Hoxton on the market with a lease of just over 59 years left. Alexander informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2012 we were e-mailed by Mr and Mrs. P Díaz who, having bought a purpose-built flat in Hoxton in August 2004. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Hoxton with a long lease were in the region of £208,600. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed in 2078. Having 57 years unexpired we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of legals.
An example of a Lease Extension decision 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 affected 2 flats. The unexpired residue of the current lease was 72.39 years.