Hastings residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Hastings with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord 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.
Alex was the the leasehold owner of a 2 bedroom flat in Hastings on the market with a lease of a little over 59 years outstanding. Alex on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Christmas we were approach by Mrs Alisha Thomas , who purchased a newly refurbished apartment in Hastings in May 2009. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative flats in Hastings with an extended lease were worth £227,800. The average amount of ground rent was £45 collected every twelve months. The lease concluded on 6 November 2089. Having 65 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.
Dr Jayden Mason purchased a first floor flat in Hastings in February 2008. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Hastings with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ran out on 26 July 2100. Given that there were 76 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.