For those whose Hilperton home is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Hilperton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Kai was the the leasehold proprietor of a studio apartment in Hilperton on the market with a lease of just over fifty eight years unexpired. Kai on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kai to invoke his statutory right. Kai obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last Autumn we were phoned by Mrs Y Rogers , who took over the lease of a purpose-built flat in Hilperton in August 2006. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Comparable homes in Hilperton with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed on 9 May 2089. Considering the 63 years left we calculated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of professional charges.
Mrs L Simon moved into a one bedroom flat in Hilperton in July 2012. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Hilperton with an extended lease were worth £270,000. The average ground rent payable was £55 collected monthly. The lease lapsed on 18 November 2100. Considering the 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.