Hilton leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease falls under eighty years - otherwise a higher amount will be due. Flat owners in Hilton will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some situations you may not be entitled. There are also strict timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle 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 conveyancer we work with provide it.
Subsequent to protracted correspondence with the landlord of her leasehold apartment in Hilton, Mollie started the lease extension process just as the lease was nearing the all-important eighty-year deadline. The legal work was finalised in February 2006. The landlord’s charges were restricted to under 700 GBP.
Last month we were contacted by Mrs Alexandra Gómez , who took over the lease of a one bedroom apartment in Hilton in July 2002. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable flats in Hilton with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed on 24 February 2095. Taking into account 70 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last Winter we were phoned by Mr and Mrs. D Wright , who owned a one bedroom flat in Hilton in May 2010. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable properties in Hilton with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed yearly. The lease ran out on 23 October 2075. Considering the 50 years remaining we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including professional charges.