It’s a harsh truth that a Hastings residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Hastings property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Hastings will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Hastings with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| TSB | |
| The Mortgage Works |
Lease extensions in Hastings can be a difficult process. We recommend you secure professional help from a conveyancer 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 dealing with Hastings lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix owned a 2 bedroom flat in Hastings being sold with a lease of a little over sixty years unexpired. Felix informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last year we were contacted by Ms Lucy Lewis , who purchased a garden apartment in Hastings in March 2002. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable premises in Hastings with an extended lease were in the region of £250,000. The average amount of ground rent was £50 billed every twelve months. The lease expired on 3 May 2095. Considering the 69 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Mr and Mrs. B Rodríguez bought a ground floor flat in Hastings in September 1996. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar flats in Hastings with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £60 collected monthly. The lease lapsed on 12 January 2106. Taking into account 80 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.