Hillingdon leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hillingdon residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hillingdon you should investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Hillingdon flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Coventry Building Society | |
| Nationwide Building Society | |
| The Mortgage Works |
The conveyancers that we work with undertake Hillingdon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Oscar owned a high value flat in Hillingdon being sold with a lease of a few days over sixty years remaining. Oscar informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Summer we were called by Mr and Mrs. T Martínez , who acquired a newly refurbished flat in Hillingdon in November 2004. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparable properties in Hillingdon with a long lease were in the region of £201,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired in 2082. Considering the 56 years remaining we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal 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 related to 2 flats. The number of years remaining on the existing lease(s) was 69 years.