Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Hillingdon. Inevitably, the length of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Hillingdon have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful attention before delaying your Hillingdon lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Hillingdon with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | 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. |
Lease extensions in Hillingdon can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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.
Aarav owned a 2 bedroom flat in Hillingdon on the market with a lease of just over fifty eight years outstanding. Aarav on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Aarav to invoke his statutory right. Aarav procured expert legal guidance and secured satisfactory resolution informally and sell the property.
Last month we were called by Ms Katie Smith , who completed a ground floor apartment in Hillingdon in August 1995. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative homes in Hillingdon with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease expired on 24 June 2083. Having 58 years left we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.
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 related to 2 flats. The number of years remaining on the existing lease(s) was 69 years.