As the length of the unexpired term of a Hastings residential lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 125 years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Hastings will meet the qualifying criteria; however a conveyancer will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Hastings with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Lease extensions in Hastings can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 Hastings lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the landlord of her leasehold flat in Hastings, Caitlin initiated the lease extension process as the eighty year deadline was fast advancing. The transaction completed in July 2014. The landlord’s fees were kept to an absolute minimum.
Last month we were approach by Mrs Rosie Rose , who bought a ground floor apartment in Hastings in January 2008. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar premises in Hastings with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 collected monthly. The lease expiry date was in 2088. Considering the 63 years outstanding we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus costs.
Mrs T Torres was assigned a lease of a ground floor flat in Hastings in February 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Hastings with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 billed yearly. The lease finished in 2099. Taking into account 74 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.