Hastings leases on domestic deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher premium will be payable. Flat owners in Hastings will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain cases you may not qualify. There are prescribed deadlines and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Hastings with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Hastings,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hastings valuers.
In recent months Eliot, came perilously close to the eighty-year mark with the lease on his leasehold apartment in Hastings. Having bought his home two decades ago, the length of the lease was of no significance. Luckily, he recognised he needed to take steps soon on a lease extension. Eliot arranged for a lease extension just in the nick of time last September. Eliot and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If the lease had slipped to less than eighty years, the price would have gone up by a minimum £1,150.
Last month we were called by Dr Archie Lefebvre , who acquired a basement apartment in Hastings in August 2007. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative premises in Hastings with 100 year plus lease were worth £181,200. The average ground rent payable was £65 billed yearly. The lease ended on 24 November 2081. Given that there were 56 years outstanding we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including costs.
Mr B Petit owned a newly refurbished flat in Hastings in August 2012. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical homes in Hastings with a long lease were worth £242,600. The average ground rent payable was £45 billed per annum. The lease end date was on 20 September 2092. Having 67 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of costs.