Main reasons to start your Hastings lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3> Top reasons for lease extension now:
</h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/hastings">Hastings</a> leasehold property depreciates with the years remaining on the lease.
</h4>
<p>
For those whose Hastings home is held on a long lease, the message is clear –
if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed.
The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension.
<h4>An extended lease is almost the same value as a freehold</h4>
<p>
Leasehold premises in Hastings with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it. <h4>Banks and Building Societies will not issue a mortgage on a short lease</h4> Banks and Building Societies have set criteria when lending monies charged on leasehold property. Some will simply refrain from lending at all once the residual lease term falls under a specified unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than 75 years as acceptable security. In addition to this being important when selling, it is also relevant if you are wanting to refinance your Hastings home.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
</tr>
<tr>
<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
</tr>
<tr>
<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
</tr>
<tr>
<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
</tr>
</tbody>
</table>
</div>
</div>
<h4>
What makes us experts in Hastings lease extensions?
</h4>
<p> Regardless of whether you are a tenant or a landlord in Hastings,the lease extension experts that we work with will always be willing 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.
<h4>
Hastings Lease Extension Case Summaries:
</h4>
<h5> Molly, Hastings, East Sussex,</h5>
<p> Following lengthy negotiations with the freeholder of her one bedroom apartment in Hastings, Molly started the lease extension process as the 80 year threshold was quickly coming. The transaction was finalised in May 2007. The freeholder’s charges were kept to an absolute minimum.
<h5>Hastings case:</h5>
<p> Dr Jayden Carter owned a basement flat in Hastings in November 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative homes in Hastings with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed annually. The lease end date was on 14 June 2104. Given that there were 78 years as a residual term we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
<h5>Hastings case:</h5>
<p> Mr and Mrs. V Simon owned a ground floor flat in Hastings in November 1995. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparative homes in Hastings with a long lease were valued about £191,000. The average ground rent payable was £65 invoiced monthly. The lease concluded in 2084. Given that there were 58 years remaining we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus expenses.
</div>