The only way is down when it comes to Hastings lease terms. Hastings flats that have a remaining term lower than 80 years will drop in value even faster, and the cost of extending your lease will go up.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you better control over the value of your Hastings leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Isaac, started to get near to the eighty-year mark with the lease on his studio apartment in Hastings. In buying his flat two decades ago, the lease term was of little concern. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Isaac was able to extend his lease at the eleventh hour in June. Isaac and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had slipped below 80 years, the premium would have escalated by a minimum £925.
In 2009 we were e-mailed by Mr and Mrs. D Mitchell who, having owned a ground floor flat in Hastings in April 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Hastings with an extended lease were valued around £275,000. The average ground rent payable was £55 collected quarterly. The lease expired on 26 August 2102. Having 76 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Dr Hollie González acquired a first floor apartment in Hastings in June 2000. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative homes in Hastings with an extended lease were worth £176,200. The average amount of ground rent was £65 collected yearly. The lease finished on 2 October 2082. Given that there were 56 years left we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.