Unfortunately that a Hastings residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Hastings property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Most flat owners in Hastings will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 landlord in Hastings,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hastings valuers.
In the wake of 6 months of unsuccessful correspondence with the landlord of her two bedroom apartment in Hastings, Louise commenced the lease extension process as the eighty year threshold was quickly advancing. The lease extension was concluded in November 2012. The freeholder’s fees were negotiated to below 550 pounds.
Last Winter we were contacted by Ms Phoebe Díaz , who acquired a first floor apartment in Hastings in January 2001. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative properties in Hastings with an extended lease were valued about £265,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 24 September 2099. Taking into account 73 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last Autumn we were e-mailed by Mrs U Díaz , who purchased a garden flat in Hastings in June 2001. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Hastings with an extended lease were valued about £264,000. The average ground rent payable was £60 collected monthly. The lease ran out in 2079. Having 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus legals.