With a long leasehold premises in Hastings, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Leasehold owners in Hastings with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. Once a lease has below eighty years outstanding, under the current Act the freeholder is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hastings can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hastings lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy negotiations with the freeholder of her studio flat in Hastings, Poppy commenced the lease extension process just as her lease was nearing the all-important eighty-year threshold. The lease extension completed in February 2008. The freeholder’s fees were negotiated to under 600 GBP.
Last January we were contacted by Mr and Mrs. Y Campbell , who owned a ground floor flat in Hastings in March 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Hastings with an extended lease were in the region of £280,000. The average ground rent payable was £55 collected quarterly. The lease terminated in 2103. Taking into account 77 years outstanding we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.
Last July we were e-mailed by Mrs Ellen Simon , who purchased a garden apartment in Hastings in February 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative properties in Hastings with a long lease were valued about £183,600. The mid-range ground rent payable was £65 billed quarterly. The lease ended in 2083. Taking into account 57 years unexpired we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.