There is no doubt about it a leasehold flat or house in Pitsea is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Pitsea will meet the qualifying criteria; that being said a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Pitsea with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Pitsea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jayden owned a high value apartment in Pitsea being marketed with a lease of just over 61 years remaining. Jayden informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jayden to exercise his statutory right. Jayden procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mrs Samantha Edwards was assigned a lease of a one bedroom apartment in Pitsea in June 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Pitsea with 100 year plus lease were in the region of £223,400. The mid-range amount of ground rent was £60 collected yearly. The lease ended in 2084. Taking into account 59 years unexpired we calculated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of costs.
Last year we were contacted by Mr U Stewart , who acquired a one bedroom flat in Pitsea in February 2001. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Identical properties in Pitsea with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease elapsed on 23 August 2104. Taking into account 79 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.