Hilton leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Hilton will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Hilton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hilton valuers.
Last year Muhammad, came dangerously near to the 80-year mark with the lease on his garden flat in Hilton. Having purchased his flat two decades ago, the length of the lease was of no significance. As luck would have it, he noticed he needed to take action soon on a lease extension. Muhammad was able to extend his lease just under the wire in August. Muhammad and the freeholder subsequently agreed on an amount of £6,000 . If the lease had fallen below eighty years, the price would have escalated by at least £1,050.
In 2012 we were phoned by Mrs R Sánchez who, having moved into a basement apartment in Hilton in March 2000. We are asked if we could approximate the price would be for a 90 year lease extension. Similar residencies in Hilton with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 collected quarterly. The lease finished on 26 February 2099. Given that there were 74 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
In 2014 we were called by Dr Samantha Díaz who, having was assigned a lease of a garden flat in Hilton in February 1997. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Identical residencies in Hilton with a long lease were worth £166,400. The mid-range amount of ground rent was £60 billed yearly. The lease finished on 22 April 2079. Taking into account 54 years unexpired we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus legals.