Why you should commence your Hastings lease extension

Why you should start your Hastings lease extension today:

Increase your lease and increase your Hastings property value

Hastings leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hastings residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hastings you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Hastings flat owner with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay

Hastings property with a lease extension has roughly the same value as a freehold

Leasehold premises in Hastings with over 100 years left 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders will not loan monies on a short lease

Lenders are making their criteria more stringent and many now want flats to have a minimum of 60 if not 70 years left once the mortgage has expired. Given that plenty of flats in Hastings were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to get a mortgage.

Get in touch with one of our Hastings lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Hastings,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hastings valuers.

Hastings Lease Extension Case Summaries:

Samuel, Hastings, East Sussex,

Samuel was the the leasehold owner of a studio apartment in Hastings on the market with a lease of just over 72 years left. Samuel on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Samuel to invoke his statutory right. Samuel obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.

Hastings case:

Ms B David was assigned a lease of a one bedroom flat in Hastings in November 2000. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical homes in Hastings with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 22 February 2079. Considering the 53 years remaining we estimated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of legals.

Hastings case:

In 2011 we were contacted by Mr and Mrs. D Vincent who, having moved into a studio apartment in Hastings in September 2011. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Similar properties in Hastings with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 collected monthly. The lease elapsed on 2 September 2090. Considering the 64 years outstanding we calculated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 plus fees.