The market value of a leasehold property in Hillingdon is impacted by how long the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded in advance of the eighty year cut off point. Statute enables Hillingdon qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Hillingdon with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 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. |
Retaining our service gives you enhanced control over the value of your Hillingdon leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her studio apartment in Hillingdon, Leah initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension completed in June 2006. The landlord’s costs were negotiated to approximately four hundred GBP.
Last Spring we were phoned by Mr and Mrs. D Miller , who was assigned a lease of a studio apartment in Hillingdon in August 1998. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative flats in Hillingdon with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease lapsed in 2104. Given that there were 78 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Hillingdon property is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The unexpired term as at the valuation date was 69 years.