The only way is down when it comes to Hastings lease terms. Hastings leaseholds that have a remaining term lower than 80 years will reduce in market price at a rapid rate, and the cost to extend your lease will rise.
Leasehold properties in Hastings with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service gives you enhanced control over the value of your Hastings leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago David, started to get close to the eighty-year threshold with the lease on his first floor flat in Hastings. In buying his home two decades ago, the unexpired term was of little concern. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. David was able to extend his lease just under the wire last March. David and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had dropped below 80 years, the price would have increased by a minimum £1,125.
Last Autumn we were e-mailed by Mr and Mrs. G Petit , who moved into a first floor flat in Hastings in August 2006. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical properties in Hastings with an extended lease were worth £225,400. The average ground rent payable was £45 invoiced quarterly. The lease end date was on 13 November 2090. Considering the 64 years outstanding we approximated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 plus professional charges.
In 2013 we were approached by Mrs Courtney Lambert who, having owned a one bedroom apartment in Hastings in May 2002. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical flats in Hastings with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease terminated on 12 September 2101. Having 75 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.