It’s a harsh truth that a Hilton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Hilton property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Hilton will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Hilton,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 Hilton valuers.
14 months ago Nathan, came dangerously near to the 80-year mark with the lease on his leasehold flat in Hilton. In buying his home 18 years previously, the unexpired term was of minimal importance. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Nathan was able to extend his lease just in the nick of time last August. Nathan and the freeholder via the managing agents eventually settled on the final figure of £5,000 . If the lease had fallen to less than 80 years, the price would have increased by a minimum £925.
Last Christmas we were approach by Mr and Mrs. H Brown , who purchased a purpose-built apartment in Hilton in July 2002. The question was if we could estimate the price would be for a 90 year lease extension. Identical homes in Hilton with an extended lease were worth £225,400. The average ground rent payable was £45 billed per annum. The lease came to a finish on 10 November 2090. Considering the 64 years left we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including costs.
Last Winter we were contacted by Mr Toby Reed , who bought a one bedroom flat in Hilton in January 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Hilton with an extended lease were valued about £270,000. The average ground rent payable was £55 collected quarterly. The lease terminated on 13 February 2101. Considering the 75 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.