The value of Pitsea leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than eighty years
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you better control over the value of your Pitsea leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful correspondence with the landlord of her garden flat in Pitsea, Victoria started the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The lease extension was concluded in October 2007. The landlord’s charges were negotiated to less than six hundred pounds.
In 2013 we were contacted by Mr and Mrs. R Turner who, having owned a one bedroom apartment in Pitsea in June 2009. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable homes in Pitsea with 100 year plus lease were valued around £267,600. The mid-range amount of ground rent was £65 billed per annum. The lease came to a finish on 25 August 2093. Taking into account 67 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus legals.
Mr Jack Turner owned a newly refurbished flat in Pitsea in June 2012. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparable homes in Pitsea with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £55 collected per annum. The lease elapsed in 2082. Having 56 years remaining we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of costs.