When it comes to residential leasehold property in Hastings, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Residents in Hastings with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has below 80 years remaining, under the current statute the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Hastings with more than 100 years outstanding on the lease are sometimes regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hastings,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hastings valuers.
Lucas was the the leasehold proprietor of a 2 bedroom flat in Hastings being sold with a lease of a little over 59 years left. Lucas on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. H Fournier bought a purpose-built apartment in Hastings in June 2007. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Hastings with 100 year plus lease were worth £173,800. The mid-range ground rent payable was £65 collected annually. The lease elapsed on 13 February 2080. Taking into account 55 years as a residual term we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
Last Summer we were approach by Mr and Mrs. F Morgan , who took over the lease of a one bedroom apartment in Hastings in November 2006. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparative premises in Hastings with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 invoiced monthly. The lease terminated on 11 May 2091. Considering the 66 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.