Hilperton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Hilperton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hilperton you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers that we work with procure Hilperton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jamie was the the leasehold proprietor of a conversion apartment in Hilperton being marketed with a lease of fraction over fifty eight years outstanding. Jamie informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jamie to exercise his statutory right. Jamie procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Last month we were e-mailed by Mr and Mrs. S Girard , who was assigned a lease of a ground floor flat in Hilperton in April 2004. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Hilperton with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 collected monthly. The lease ended on 20 February 2084. Having 59 years remaining we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus fees.
In 2009 we were phoned by Mr and Mrs. J Martínez who, having bought a recently refurbished flat in Hilperton in October 2003. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative premises in Hilperton with a long lease were valued about £250,000. The average ground rent payable was £50 invoiced per annum. The lease lapsed on 18 March 2095. Taking into account 70 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.