Hoxton leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Hoxton will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 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 residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank |
The lawyers that we work with handle 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.
Jack owned a high value apartment in Hoxton being sold with a lease of just over sixty years remaining. Jack informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jack to invoke his statutory right. Jack obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Ms A Dupont acquired a one bedroom apartment in Hoxton in May 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar homes in Hoxton with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded on 27 November 2102. Having 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
An example of a Lease Extension matter before the tribunal 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 was in relation to 2 flats. The remaining number of years on the lease was 72.39 years.