Hilton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Hilton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hilton you really ought to see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Hilton flat owner with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Hilton with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Hilton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hilton valuers.
Last October Archie, started to get close to the eighty-year threshold with the lease on his ground floor flat in Hilton. Having bought his home two decades ago, the lease term was of minimal concern. Thankfully, he recognised he needed to take action soon on Extending the lease. Archie arranged for a lease extension just under the wire in May. Archie and the freeholder in the end agreed on a premium of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £1,150.
In 2013 we were called by Mr A Parker who, having acquired a ground floor apartment in Hilton in May 2006. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative residencies in Hilton with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease lapsed in 2101. Taking into account 75 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Mr and Mrs. M Gray purchased a one bedroom apartment in Hilton in February 2001. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Similar flats in Hilton with a long lease were worth £173,800. The average amount of ground rent was £60 invoiced quarterly. The lease ended on 24 October 2081. Considering the 55 years remaining we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.