The nearer a residential lease in Hilton nears to zero years unexpired, the more it reduces the value of the property. If the lease has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner as opposed to later. Most flat owners in Hilton will meet the qualifying criteria; that being said a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Regardless of whether you are a tenant or a landlord in Hilton,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 Hilton valuers.
Seth owned a 2 bedroom flat in Hilton on the market with a lease of fraction over 59 years outstanding. Seth on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Seth to exercise his statutory right. Seth obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Last year we were e-mailed by Mr and Mrs. U Dupont , who owned a purpose-built flat in Hilton in October 2004. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable residencies in Hilton with an extended lease were worth £264,000. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish on 27 June 2079. Given that there were 53 years outstanding we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including costs.
Last Winter we were e-mailed by Dr J Davies , who acquired a basement apartment in Hilton in June 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Hilton with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 billed yearly. The lease ended on 17 March 2090. Taking into account 64 years unexpired we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including expenses.