When it comes to residential leasehold property in Hastings, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years remaining. Leasehold owners in Hastings with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has under eighty years left, under the relevant statute the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Hastings with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
Using our service will provide you increased control over the value of your Hastings leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Toby owned a studio apartment in Hastings on the market with a lease of a few days over sixty years left. Toby on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Last April we were phoned by Mr and Mrs. N Ramírez , who owned a garden flat in Hastings in January 2007. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Hastings with an extended lease were valued around £232,800. The average amount of ground rent was £45 collected quarterly. The lease came to a finish on 22 March 2091. Given that there were 65 years remaining we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.
Last month we were contacted by Mrs U Alexander , who bought a first floor flat in Hastings in March 2009. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable flats in Hastings with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease ended in 2102. Having 76 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.