Hastings leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Flat owners in Hastings will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Hastings with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder 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.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her studio apartment in Hastings, Rachel started the lease extension process as the eighty year deadline was rapidly nearing. The legal work completed in January 2006. The freeholder’s costs were kept to an absolute minimum.
Mr Freddie Carter purchased a one bedroom apartment in Hastings in October 2002. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparative homes in Hastings with a long lease were valued about £191,000. The average amount of ground rent was £65 invoiced monthly. The lease elapsed in 2084. Considering the 58 years remaining we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of costs.
Mr and Mrs. E Ramírez bought a first floor apartment in Hastings in February 2004. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Hastings with an extended lease were valued about £250,000. The average amount of ground rent was £50 collected yearly. The lease end date was on 13 January 2095. Given that there were 69 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.