Unfortunately that a Hilperton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Hilperton property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining drops below eighty years, you will end up paying half 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 additional value that a lease extension will add the property Most flat owners in Hilperton will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Hilperton with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Hilperton,the lease extension lawyers 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 Hilperton valuers.
16 months ago Nathaniel, came critically near to the eighty-year mark with the lease on his studio flat in Hilperton. In buying his home two decades ago, the lease term was of little importance. Thankfully, he noticed he needed to take steps soon on a lease extension. Nathaniel extended the lease just ahead of time last June. Nathaniel and the freeholder via the management company eventually agreed on sum of £5,000 . If he had missed the deadline, the figure would have gone up by at least £1,100.
In 2011 we were called by Mrs Robyn Green who, having owned a ground floor flat in Hilperton in March 1997. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar residencies in Hilperton with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 billed monthly. The lease end date was on 4 January 2103. Given that there were 78 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Mr Oscar Fournier took over the lease of a ground floor flat in Hilperton in November 2005. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable homes in Hilperton with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease expired in 2082. Having 57 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.