When it comes to domestic leasehold property in Hilton, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Anyone in Hilton with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years left, under the current legislation the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Hilton with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Hilton 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.
Trailing lengthy correspondence with the freeholder of her basement apartment in Hilton, Morgan commenced the lease extension process just as her lease was nearing the all-important eighty-year threshold. The lease extension was concluded in February 2010. The freeholder’s charges were negotiated to slightly above 500 GBP.
In 2013 we were contacted by Mr Leo Morris who, having was assigned a lease of a first floor flat in Hilton in October 1997. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar properties in Hilton with an extended lease were worth £246,800. The mid-range ground rent payable was £60 billed monthly. The lease elapsed on 18 October 2076. Considering the 50 years as a residual term we estimated the premium to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of legals.
Last Christmas we were called by Mr and Mrs. O Norbert , who acquired a one bedroom flat in Hilton in March 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Hilton with a long lease were valued around £208,200. The mid-range ground rent payable was £65 billed yearly. The lease concluded in 2087. Taking into account 61 years left we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus legals.