Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Hilton. Clearly, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Hilton have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give due deliberation before putting off your Hilton lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Hilton with more than 100 years left on the lease are often regarded as a ‘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 warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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 experts 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.
Two years ago Aaron, started to get near to the 80-year threshold with the lease on his garden apartment in Hilton. In buying his home two decades ago, the lease term was of no significance. As luck would have it, he recognised he needed to take action soon on a lease extension. Aaron was able to extend his lease just under the wire last September. Aaron and the landlord who owned the flat above ultimately settled on sum of £5,000 . If the lease had fallen below eighty years, the amount would have escalated by at least £975.
In 2011 we were e-mailed by Mr and Mrs. H Rivera who, having bought a ground floor flat in Hilton in October 2009. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative residencies in Hilton with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £60 billed yearly. The lease expiry date was in 2106. Considering the 80 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Mr and Mrs. M Sánchez completed a purpose-built apartment in Hilton in July 1995. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Similar properties in Hilton with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 billed every twelve months. The lease came to a finish on 3 September 2086. Having 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.