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Top reasons for Hilton lease extension


Top reasons for lease extension now:

Increase your lease and increase your Hilton property value

It’s an underpublicised certainty that a Hilton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Hilton property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term dips 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. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Hilton will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Mortgage lenders will not lend with a short lease

Banks and building societies are really restricting their approach as regards to homes in Hilton with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you needed to sell, your only options would be to find a cash purchaser, or try your luck at auction thus restricting the amount of prospective purchasers.

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.
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.
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.

What makes us experts in Hilton lease extensions?

The lawyers that we work with handle 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 conveyancer we work with provide it.

Hilton Lease Extension Case Summaries:

Jonathan, Hilton, Derbyshire,

Jonathan was the the leasehold proprietor of a studio apartment in Hilton being marketed with a lease of a little over 61 years unexpired. Jonathan on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.

Hilton case:

Last July we were called by Mr and Mrs. C Ricardo , who moved into a purpose-built flat in Hilton in September 2009. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable premises in Hilton with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease termination date was on 3 February 2104. Taking into account 80 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.

Hilton case:

Dr A Carter purchased a ground floor flat in Hilton in March 2012. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable properties in Hilton with 100 year plus lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected yearly. The lease ran out on 7 November 2084. Taking into account 60 years as a residual term we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of fees.