With a residential leasehold property in Hilton, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Residents in Hilton with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has less than 80 years remaining, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Hilton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hilton valuers.
16 months ago Jason, came critically close to the eighty-year mark with the lease on his leasehold flat in Hilton. Having bought his property 18 years previously, the lease term was of minimal bearing. by good luck, he realised he would imminently be paying way over the odds for a lease extension. Jason was able to extend his lease just under the wire last January. Jason and the freeholder eventually settled on the final figure of £5,500 . If he not met the deadline, the sum would have become more costly by at least £1,075.
Dr U André owned a ground floor flat in Hilton in July 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Hilton with an extended lease were valued around £260,000. The average amount of ground rent was £50 collected yearly. The lease end date was in 2097. Given that there were 72 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
Mr R Roux moved into a studio apartment in Hilton in February 2005. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparative properties in Hilton with 100 year plus lease were worth £261,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease finished in 2077. Taking into account 52 years unexpired we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 not including costs.