Unfortunately that a Hilton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Hilton property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Hilton will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Retaining our service will provide you better control over the value of your Hilton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jason, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Hilton. In buying his home twenty years previously, the unexpired term was of no significance. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Jason extended the lease at the eleventh hour last March. Jason and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If the lease had dropped lower than 80 years, the sum would have gone up by at least £900.
Last Christmas we were e-mailed by Mr Ali Lefèvre , who bought a ground floor flat in Hilton in September 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable flats in Hilton with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 invoiced quarterly. The lease ended on 6 November 2082. Given that there were 56 years outstanding we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including legals.
Last Spring we were called by Mrs V François , who completed a studio apartment in Hilton in August 1999. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparable properties in Hilton with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 billed per annum. The lease concluded on 27 July 2093. Having 67 years outstanding we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 plus fees.