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. If the residual term has, more than 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Pitsea will qualify for this right; however a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Pitsea with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Pitsea,the lease extension experts that we work with will always be happy 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.
Last Autumn Luca, came critically near to the eighty-year threshold with the lease on his two bedroom flat in Pitsea. Having bought his flat two decades ago, the lease term was of minimal interest. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Luca was able to extend his lease just under the wire in July. Luca and the freeholder via the management company in the end settled on sum of £5,500 . If the lease had descended lower than 80 years, the price would have become more costly by a minimum £1,125.
In 2013 we were contacted by Dr Leo Rodríguez who, having purchased a ground floor flat in Pitsea in April 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Pitsea with an extended lease were worth £200,000. The mid-range ground rent payable was £50 invoiced annually. The lease finished on 24 August 2103. Having 78 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last year we were contacted by Mrs H Johnson , who moved into a garden apartment in Pitsea in March 2003. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical properties in Pitsea with 100 year plus lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced per annum. The lease terminated on 27 May 2092. Given that there were 67 years remaining we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including fees.