The only way is down when it comes to Hillingdon lease terms. Hillingdon leaseholds that have a lease term less than than 80 years will drop in value even faster, and the cost to extend your lease will rise.
Leasehold premises in Hillingdon with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hillingdon can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Hillingdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the freeholder of her garden apartment in Hillingdon, Mia commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The transaction was finalised in May 2014. The freeholder’s fees were negotiated to below 600 GBP.
Last year we were called by Dr N Johnson , who acquired a one bedroom apartment in Hillingdon in February 2002. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Comparable flats in Hillingdon with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed per annum. The lease end date was in 2081. Having 55 years as a residual term we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Hillingdon flat 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 was in relation to 2 flats. The unexpired term was 69 years.