Why you should start your Pitsea lease extension

Main reasons to start your Pitsea lease extension today:

Increase your lease and increase your Pitsea property value

It’s a harsh certainty that a Pitsea residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Pitsea property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Pitsea will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.

Pitsea property with a lease extension is almost the same value as a freehold

Leasehold premises in Pitsea with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders may not loan monies on a short lease

Lenders do not like short residential leases. You most probably experience difficulties if you need to sell your flat in Pitsea if the remaining lease term is under the criteria set by the majority of lenders. Different mortgage companies have different criteria but generally they are looking for a minimum remaining lease term of seventy years.

Why use us for your lease extension in Pitsea?

Regardless of whether you are a tenant or a landlord in Pitsea,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pitsea valuers.

Pitsea Lease Extension Case Studies:

Catherine, Pitsea, Essex,

Following lengthy discussions with the freeholder of her first floor flat in Pitsea, Catherine commenced the lease extension process as the 80 year threshold was swiftly approaching. The transaction was concluded in May 2011. The freeholder’s fees were kept to an absolute minimum.

Pitsea case:

In 2011 we were called by Dr D Laurent who, having moved into a purpose-built flat in Pitsea in April 2009. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical properties in Pitsea with an extended lease were worth £275,000. The mid-range amount of ground rent was £45 billed annually. The lease came to a finish in 2095. Given that there were 69 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.

Pitsea case:

In 2013 we were e-mailed by Ms G Mercier who, having owned a studio flat in Pitsea in March 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical properties in Pitsea with 100 year plus lease were valued about £216,000. The average ground rent payable was £60 billed annually. The lease end date was in 2084. Considering the 58 years outstanding we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.