The market value of a leasehold property in Hilperton depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded well before the 80 year mark. Leasehold Reform legislation enables Hilperton qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Hilperton,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 in-depth market knowledge and the close ties they enjoy with Hilperton valuers.
Evan owned a conversion flat in Hilperton on the market with a lease of fraction over 59 years unexpired. Evan on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last Christmas we were phoned by Ms H Stewart , who acquired a one bedroom flat in Hilperton in May 1996. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Hilperton with an extended lease were valued about £290,000. The mid-range amount of ground rent was £60 collected yearly. The lease terminated on 8 March 2106. Given that there were 80 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
In 2011 we were contacted by Mr Dexter Lefebvre who, having took over the lease of a purpose-built apartment in Hilperton in September 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Hilperton with a long lease were worth £200,800. The average amount of ground rent was £65 billed per annum. The lease came to a finish in 2086. Considering the 60 years left we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.