With a residential leasehold premises in Hilton, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years remaining. Anyone in Hilton with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years outstanding, under the current legislation the landlord can calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
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 is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant 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; |
| National Westminster Bank | Mortgage term plus 30 years. 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Hilton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Reuben, started to get near to the eighty-year mark with the lease on his two bedroom flat in Hilton. Having purchased his home 19 years ago, the lease term was of no concern. Fortunately, he recognised he would soon be paying an inflated amount for Extending the lease. Reuben was able to extend his lease just under the wire last March. Reuben and the freeholder via the management company ultimately agreed on a premium of £6,000 . If the lease had gone to less than 80 years, the sum would have become more costly by a minimum £1,075.
Mrs J Vincent took over the lease of a studio apartment in Hilton in November 2005. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Comparable residencies in Hilton with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease terminated on 20 March 2095. Having 69 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Last Autumn we were phoned by Dr Megan Johnson , who took over the lease of a recently refurbished flat in Hilton in June 2003. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical flats in Hilton with a long lease were in the region of £290,000. The mid-range amount of ground rent was £60 collected quarterly. The lease ended in 2106. Having 80 years remaining we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.