Why you should start your Hilton lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3> Top reasons for lease extension now:
</h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/hilton">Hilton</a> leasehold property depreciates with the years remaining on the lease.
</h4>
<p> 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
<h4>An extended lease is almost the same value as a freehold</h4>
<p>
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. <h4>Banks and Building Societies may decide not to lend with a short lease</h4> Lending institutions are less likely to issue a loan offer on a residential property in Hilton with a short lease. Some lenders simply refuse a mortgage on leases with less than 75 years left.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Chelsea Building Society</td>
<td> 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.
</tr>
<tr>
<td>Godiva Mortgages</td>
<td> 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.
</tr>
<tr>
<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
</tr>
<tr>
<td>Yorkshire Building Society</td>
<td> 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.
</tr>
</tbody>
</table>
</div>
</div>
<h4> Get in touch with one of our Hilton lease extension solicitors or enfranchisement solicitors
</h4>
<p> 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 respect of lease length should you want to sell.
The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Hilton Lease Extension Case Summaries:
</h4>
<h5> Jasmine, Hilton, Derbyshire,</h5>
<p> In the wake of 9 months of unsuccessful correspondence with the freeholder of her garden flat in Hilton, Jasmine started the lease extension process as the eighty year threshold was swiftly approaching. The lease extension was concluded in February 2012. The landlord’s costs were negotiated to about 550 pounds.
<h5>Hilton case:</h5>
<p>
Last Christmas we were e-mailed by Ms J Clark , who
took over the lease of a purpose-built apartment in Hilton in March 2011. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical residencies in Hilton with 100 year plus lease were in the region of £191,000. The average amount of ground rent was £65 invoiced every twelve months. The lease finished on 25 November 2084. Taking into account 58 years unexpired we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of legals.
<h5>Hilton case:</h5>
<p> Mr Thomas Mason acquired a recently refurbished flat in Hilton in October 2012. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Hilton with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease expired on 20 October 2095. Given that there were 69 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
</div>