Hilton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Hilton tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hilton you really ought to see if your lease has between seventy and ninety years remaining. There are good reasons why a Hilton flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Hilton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hilton valuers.
Ollie owned a high value flat in Hilton being sold with a lease of fraction over 59 years left. Ollie informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Mr and Mrs. R Smith bought a basement flat in Hilton in February 1995. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Hilton with a long lease were valued around £245,000. The average ground rent payable was £50 billed monthly. The lease concluded on 7 October 2094. Taking into account 68 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2013 we were contacted by Dr Sophie Anderson who, having bought a studio apartment in Hilton in August 1997. The question was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable flats in Hilton with a long lease were in the region of £285,000. The average ground rent payable was £55 collected monthly. The lease came to a finish on 7 May 2105. Given that there were 79 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.