The market value of a leasehold property in Hilton depends on how long the lease has remaining. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year threshold. Leasehold Reform legislation entitles Hilton qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 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. |
Lease extensions in Hilton can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Hilton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Jackson, came perilously near to the 80-year threshold with the lease on his studio flat in Hilton. Having purchased his flat twenty years previously, the lease term was of little relevance. Fortunately, he became aware that he would imminently be paying an inflated amount for a lease extension. Jackson arranged for a lease extension at the eleventh hour in August. Jackson and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If he not met the deadline, the premium would have increased by at least £1,075.
Dr John Adams acquired a first floor flat in Hilton in August 1996. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Identical homes in Hilton with an extended lease were in the region of £208,200. The average ground rent payable was £65 invoiced per annum. The lease elapsed in 2087. Considering the 61 years outstanding we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus legals.
Last October we were e-mailed by Ms S Wilson , who was assigned a lease of a first floor apartment in Hilton in August 2011. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable properties in Hilton with a long lease were valued about £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2098. Given that there were 72 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.