Pitsea residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold residencies in Pitsea with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Following lengthy negotiations with the freeholder of her first floor apartment in Pitsea, Catherine commenced the lease extension process as the 80 year mark was swiftly approaching. The transaction was finalised in October 2005. The landlord’s charges were negotiated to a tad over 650 GBP.
Mr and Mrs. J Hernández owned a purpose-built flat in Pitsea in August 2005. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative residencies in Pitsea with a long lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced yearly. The lease ended in 2080. Considering the 54 years outstanding we calculated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of costs.
In 2011 we were called by Dr John Martinez who, having owned a garden apartment in Pitsea in April 2010. We are asked if we could estimate the premium would be to extend the lease by 90 years. Similar properties in Pitsea with an extended lease were worth £295,000. The average ground rent payable was £45 billed yearly. The lease terminated in 2100. Having 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.