Why you should start your Hilton lease extension
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Main reasons to commence your Hilton lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/hilton">Hilton</a> property value </h4>
<p> The market value of Hilton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is less than 80 years
<h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold properties in Hilton with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it. <h4>Lending institutions will not lend on a short lease</h4> Most mortgage companies require a lengthy amount of time remaining on a leasehold property before they will consider it as adequate security. Even if you don't require a mortgage, you should be aware that it is likely that someone intending to buy your property in the future might well do, so if they are unable to obtain a mortgage, then the financial worth of the property will likely be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are willing to accept <p>
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<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<h4>
What makes us experts in Hilton lease extensions?
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The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
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Hilton Lease Extension Case Summaries:
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<h5> Leon, Hilton, Derbyshire</h5>
<p> Half a year ago Leon, came very near to the 80-year mark with the lease on his studio apartment in Hilton. In buying his property two decades ago, the length of the lease was of little significance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Leon extended the lease just under the wire in July. Leon and the landlord who owned the flat above in the end agreed on the final figure of £5,500 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,100.
<h5>Hilton case:</h5>
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Last Christmas we were contacted by Mr and Mrs. G Peterson , who
completed a garden apartment in Hilton in November 2011. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar homes in Hilton with a long lease were worth £166,400. The average ground rent payable was £60 invoiced monthly. The lease terminated on 26 October 2080. Having 54 years remaining we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of expenses.
<h5>Hilton case:</h5>
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Last month we were phoned by Dr S Sánchez , who
owned a newly refurbished flat in Hilton in September 2007. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparative properties in Hilton with an extended lease were worth £227,800. The mid-range amount of ground rent was £45 invoiced monthly. The lease ended in 2091. Considering the 65 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
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