Why you should commence your Hastings lease extension

Top reasons for lease extension now:

Increase your lease and increase your Hastings property value

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. Most owners of residential leasehold property in Hastings enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hastings you must check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Hastings leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay

Hastings property with a lease extension is almost the same value as a freehold

Leasehold properties in Hastings with over 100 years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may not issue a mortgage on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Hastings lease extensions?

Regardless of whether you are a tenant or a landlord in Hastings,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hastings valuers.

Hastings Lease Extension Example Cases:

Alexander, Hastings, East Sussex,

Alexander was the the leasehold proprietor of a high value flat in Hastings on the market with a lease of fraction over 59 years remaining. Alexander on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.

Hastings case:

Last Christmas we were approach by Mr Joshua García , who completed a studio apartment in Hastings in July 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in Hastings with 100 year plus lease were worth £166,400. The average ground rent payable was £60 invoiced monthly. The lease terminated on 22 January 2080. Having 54 years left we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of costs.

Hastings case:

Mr and Mrs. P Lefebvre purchased a first floor apartment in Hastings in April 1999. The question was if we could approximate the price would be for a 90 year lease extension. Similar residencies in Hastings with a long lease were valued about £232,800. The mid-range amount of ground rent was £45 collected yearly. The lease end date was on 11 August 2091. Given that there were 65 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.