The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Hastings have the right to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before delaying your Hastings lease extension. Postponing the costs now simply increases the premium you will ultimately have to pay to extend the lease.
Leasehold properties in Hastings with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancers that we work with undertake Hastings lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Ali, came critically near to the 80-year mark with the lease on his garden flat in Hastings. Having bought his home 18 years ago, the length of the lease was of no concern. Thankfully, he recognised he needed to take action soon on a lease extension. Ali arranged for a lease extension at the eleventh hour in March. Ali and the freeholder eventually settled on the final figure of £5,500 . If the lease had descended lower than eighty years, the figure would have become more costly by at least £1,075.
In 2010 we were called by Mr N Rose who, having moved into a basement apartment in Hastings in March 1995. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical properties in Hastings with 100 year plus lease were valued around £270,000. The average amount of ground rent was £55 billed yearly. The lease end date was on 23 July 2100. Taking into account 74 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Mr C André was assigned a lease of a studio apartment in Hastings in November 2008. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable homes in Hastings with a long lease were worth £166,400. The average ground rent payable was £60 collected monthly. The lease concluded on 18 July 2080. Having 54 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of fees.