As the the remaining lease term of a Hillingdon domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than 100 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Most flat owners in Hillingdon will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Hillingdon with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you better control over the value of your Hillingdon leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Max was the the leasehold owner of a studio apartment in Hillingdon on the market with a lease of a few days over 59 years outstanding. Max informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2009 we were approached by Mr Harrison Mason who, having purchased a ground floor apartment in Hillingdon in April 1995. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative properties in Hillingdon with a long lease were valued about £205,000. The average amount of ground rent was £50 invoiced per annum. The lease termination date was on 16 February 2103. Considering the 79 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Hillingdon residence is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The number of years remaining on the existing lease(s) was 69 years.