It’s an underpublicised truth that a Hillingdon residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Hillingdon property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Hillingdon will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Hillingdon with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Hillingdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the landlord of her studio apartment in Hillingdon, Daisy started the lease extension process as the eighty year threshold was swiftly coming. The legal work was concluded in March 2009. The landlord’s fees were kept to an absolute minimum.
Mr W Gómez acquired a first floor flat in Hillingdon in October 1996. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Identical homes in Hillingdon with a long lease were worth £200,000. The average ground rent payable was £50 collected annually. The lease came to a finish on 12 September 2102. Having 77 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
An example of a Freehold Enfranchisement decision for a Hillingdon residence 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 remaining number of years on the lease was 69 years.