Hillingdon leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. Flat owners in Hillingdon will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Hillingdon with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Hillingdon,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hillingdon valuers.
In 2014 Seth, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Hillingdon. Having purchased his property twenty years previously, the lease term was of minimal bearing. Luckily, he realised he would soon be paying way over the odds for Extending the lease. Seth was able to extend his lease at the eleventh hour in July. Seth and the freeholder in the end settled on sum of £5,000 . If he failed to meet the deadline, the price would have gone up by a minimum £1,025.
Last Autumn we were phoned by Mrs Erin Garcia , who was assigned a lease of a studio apartment in Hillingdon in February 1999. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Comparable flats in Hillingdon with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 billed annually. The lease ended on 10 June 2098. Having 72 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.
An example of a Freehold Enfranchisement decision for a Hillingdon residence is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case affected 2 flats. The remaining number of years on the lease was 69 years.