Hillingdon leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Hillingdon will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some situations you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Hillingdon with over 100 years remaining 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 to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Hillingdon can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 in-depth market knowledge 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.
In 2014 Ryan, started to get near to the eighty-year threshold with the lease on his basement flat in Hillingdon. Having purchased his home 19 years previously, the unexpired term was of little importance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Ryan arranged for a lease extension at the eleventh hour last June. Ryan and the freeholder in the end settled on a premium of £5,000 . If the lease had slid lower than eighty years, the price would have become more exhorbitant by at least £1,100.
Last year we were contacted by Dr Theo Baker , who bought a purpose-built apartment in Hillingdon in November 1999. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar properties in Hillingdon with an extended lease were in the region of £295,000. The average ground rent payable was £45 collected monthly. The lease expired on 17 January 2101. Taking into account 75 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 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 unexpired term was 69 years.