Why you should start your Hillingdon lease extension

Top reasons for lease extension now:

A Hillingdon leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Hillingdon is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years to run so that all matters can be finalised prior to the 80 year mark. Current legislation enables Hillingdon qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may not lend on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Hillingdon?

Irrespective of whether you are a tenant or a freeholder in Hillingdon,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hillingdon valuers.

Hillingdon Lease Extension Example Cases:

Kyle, Hillingdon, West London,

Kyle owned a conversion flat in Hillingdon on the market with a lease of fraction over fifty eight years left. Kyle on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Kyle to invoke his statutory right. Kyle procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.

Hillingdon case:

Last Winter we were contacted by Mrs Daisy Anderson , who moved into a garden apartment in Hillingdon in October 2007. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Similar properties in Hillingdon with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed in 2105. Having 79 years left we calculated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 plus fees.