Hastings leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Hastings residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hastings you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Hastings with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|Chelsea 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.|
|Halifax|| Minimum 70 years from the date of the mortgage.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|Lloyds TSB Scotland|| Mortgage term plus 30 years subject to an overall minimum term of 70 years|
The lawyers that we work with undertake Hastings lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jonathan was the the leasehold proprietor of a high value apartment in Hastings being marketed with a lease of just over fifty eight years left. Jonathan on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mrs A Pérez was assigned a lease of a purpose-built apartment in Hastings in July 1996. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar properties in Hastings with a long lease were valued around £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated in 2092. Given that there were 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
In 2011 we were called by Mrs Morgan Mitchell who, having took over the lease of a one bedroom flat in Hastings in September 1996. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar properties in Hastings with 100 year plus lease were valued about £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease expired in 2072. Having 51 years remaining we estimated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of expenses.