The re-sale value of a leasehold property in Hilton is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed in advance of the eighty year cut off point. Current legislation enables Hilton qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Hilton with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 landlord in Hilton,the lease extension lawyers 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.
Cameron owned a 2 bedroom apartment in Hilton on the market with a lease of just over 61 years remaining. Cameron on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Cameron to exercise his statutory right. Cameron procured expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2014 we were called by Dr B Ward who, having moved into a one bedroom flat in Hilton in March 2011. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Similar properties in Hilton with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 billed annually. The lease expired in 2103. Taking into account 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.
In 2009 we were phoned by Mrs W Rivera who, having bought a garden flat in Hilton in April 1996. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable homes in Hilton with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 invoiced yearly. The lease expired on 11 August 2083. Considering the 57 years left we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.