It’s an underpublicised certainty that a Hastings residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Hastings property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Hastings will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Hastings with more than 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society | |
| Yorkshire Building Society |
Lease extensions in Hastings can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hastings lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the landlord of her two bedroom flat in Hastings, Rebecca commenced the lease extension process as the 80 year deadline was rapidly coming. The legal work was finalised in September 2008. The landlord’s fees were kept to an absolute minimum.
Last Spring we were approach by Ms Sarah Bonnet , who owned a studio flat in Hastings in April 2009. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Hastings with a long lease were in the region of £290,000. The average ground rent payable was £60 billed per annum. The lease ran out on 12 April 2106. Given that there were 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Ms H Carter owned a ground floor flat in Hastings in April 2005. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar premises in Hastings with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out in 2086. Considering the 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 plus expenses.