With a long leasehold premises in Hastings, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Leasehold owners in Hastings with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years remaining, under the relevant legislation the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Hastings with over one hundred years remaining 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| The Mortgage Works |
Retaining our service gives you better control over the value of your Hastings leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Benjamin was the the leasehold proprietor of a conversion flat in Hastings on the market with a lease of just over fifty eight years unexpired. Benjamin on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2010 we were approached by Mr and Mrs. M Cook who, having took over the lease of a studio apartment in Hastings in May 2010. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative premises in Hastings with an extended lease were valued about £183,600. The average ground rent payable was £65 billed quarterly. The lease ran out on 13 August 2083. Taking into account 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.
In 2011 we were phoned by Ms N André who, having was assigned a lease of a one bedroom apartment in Hastings in February 1998. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparative flats in Hastings with 100 year plus lease were valued about £250,000. The mid-range ground rent payable was £50 collected per annum. The lease ended on 20 July 2094. Having 68 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.