Chances are that if you own a flat in Hastings you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless 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.
Two years ago Arthur, started to get close to the eighty-year mark with the lease on his one bedroom flat in Hastings. In buying his home 18 years previously, the lease term was of little concern. As luck would have it, he became aware that he needed to take action soon on a lease extension. Arthur was able to extend his lease just under the wire in September. Arthur and the freeholder subsequently agreed on the final figure of £6,000 . If the lease had dropped to less than 80 years, the premium would have escalated by at least £1,050.
Last Winter we were approach by Mr and Mrs. Y Bonnet , who completed a basement flat in Hastings in February 1996. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable premises in Hastings with an extended lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease lapsed in 2096. Considering the 71 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
In 2012 we were approached by Mr and Mrs. P Gómez who, having purchased a recently refurbished apartment in Hastings in October 2009. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Similar properties in Hastings with 100 year plus lease were valued about £254,200. The average amount of ground rent was £60 billed per annum. The lease concluded in 2076. Given that there were 51 years as a residual term we estimated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus expenses.