When it comes to long leasehold property in Hoxton, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years remaining. Leasehold owners in Hoxton with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. When a lease has under 80 years remaining, under the current Act the freeholder can calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Hoxton,the lease extension lawyers that we work with will always be prepared 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.
Two years ago Jason, started to get near to the eighty-year threshold with the lease on his ground floor flat in Hoxton. In buying his home 19 years ago, the unexpired term was of minimal concern. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Jason arranged for a lease extension just in the nick of time in June. Jason and the freeholder via the management company in the end settled on a premium of £5,000 . If the lease had descended lower than eighty years, the sum would have become more costly by a minimum £1,000.
Last Autumn we were contacted by Dr G Murphy , who acquired a ground floor flat in Hoxton in May 1996. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical homes in Hoxton with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease expired on 1 July 2098. Taking into account 72 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.
An example of a Lease Extension decision for a Hoxton property 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 number of years remaining on the existing lease(s) was 72.39 years.