Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Pitsea. Inevitably, the period of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Pitsea have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give due consideration before putting off your Pitsea lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Pitsea can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Pitsea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Liam owned a conversion flat in Pitsea on the market with a lease of just over 72 years left. Liam informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Liam to invoke his statutory right. Liam procured expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Last February we were approach by Mr O Laurent , who bought a basement apartment in Pitsea in March 1995. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative residencies in Pitsea with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 collected annually. The lease concluded in 2087. Given that there were 61 years as a residual term we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of legals.
In 2011 we were phoned by Mrs D Laurent who, having bought a garden apartment in Pitsea in August 1996. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Identical premises in Pitsea with an extended lease were valued about £166,800. The average ground rent payable was £55 billed monthly. The lease termination date was in 2076. Having 50 years left we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus costs.