Pitsea leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Flat owners in Pitsea will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Pitsea,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pitsea valuers.
After unsuccessful discussions with the freeholder of her one bedroom apartment in Pitsea, Sarah commenced the lease extension process just as her lease was approaching the all-important eighty-year threshold. The transaction was finalised in June 2005. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were e-mailed by Mr K López who, having owned a first floor flat in Pitsea in February 2004. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Pitsea with 100 year plus lease were valued about £250,400. The average amount of ground rent was £65 billed per annum. The lease finished in 2090. Having 64 years as a residual term we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of costs.
Last year we were e-mailed by Dr Daniel González , who bought a purpose-built flat in Pitsea in May 1995. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Pitsea with 100 year plus lease were valued around £184,000. The mid-range ground rent payable was £55 billed monthly. The lease finished in 2079. Having 53 years remaining we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.