The market value of Hilton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is below than eighty years
Leasehold properties in Hilton with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 Hilton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her first floor apartment in Hilton, Morgan commenced the lease extension process just as her lease was coming close to the crucial 80-year mark. The legal work was finalised in November 2010. The landlord’s charges were kept to an absolute minimum.
Mr C James acquired a first floor apartment in Hilton in September 2011. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparative premises in Hilton with a long lease were valued about £191,000. The average ground rent payable was £65 collected every twelve months. The lease concluded in 2084. Taking into account 58 years as a residual term we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 plus legals.
In 2013 we were e-mailed by Mr and Mrs. R Mitchell who, having moved into a first floor flat in Hilton in July 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative premises in Hilton with a long lease were worth £250,000. The average amount of ground rent was £50 billed yearly. The lease ended on 28 May 2095. Given that there were 69 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.