Why you should commence your Hastings lease extension

Top reasons for lease extension now:

A Hastings lease depreciates with the years remaining on the lease.

The only way is down when it comes to Hastings lease terms. Hastings flats that have a remaining term lower than 80 years will drop in value even faster, and the cost of extending your lease will go up.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.

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

Banks and Building Societies have set criteria when loaning funds charged on leasehold homes. Some will simply refrain from lending at all once the remaining lease term slips lower than a specified unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than 75 years suitable security. In addition to impacting your ability to sell, it is also relevant if you are wanting to refinance your Hastings property.

Why use us for your lease extension in Hastings?

Using our service gives you better control over the value of your Hastings leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Hastings Lease Extension Case Studies:

Isaac, Hastings, East Sussex

During the course of the last few months Isaac, started to get near to the eighty-year mark with the lease on his studio apartment in Hastings. In buying his flat two decades ago, the lease term was of little concern. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Isaac was able to extend his lease at the eleventh hour in June. Isaac and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had slipped below 80 years, the premium would have escalated by a minimum £925.

Hastings case:

In 2009 we were e-mailed by Mr and Mrs. D Mitchell who, having owned a ground floor flat in Hastings in April 2005. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Hastings with an extended lease were valued around £275,000. The average ground rent payable was £55 collected quarterly. The lease expired on 26 August 2102. Having 76 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.

Hastings case:

Dr Hollie González acquired a first floor apartment in Hastings in June 2000. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative homes in Hastings with an extended lease were worth £176,200. The average amount of ground rent was £65 collected yearly. The lease finished on 2 October 2082. Given that there were 56 years left we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.