The market value of a leasehold property in Pitsea is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised prior to the eighty year mark. Leasehold Reform legislation entitles Pitsea qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Pitsea with over one hundred years unexpired 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Pitsea can be a difficult process. We recommend you get guidance from a lawyer and valuer 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.
Off the back of unsuccessful discussions with the landlord of her one bedroom flat in Pitsea, Freya commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work was finalised in September 2009. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were called by Dr Nathaniel Martínez who, having completed a recently refurbished apartment in Pitsea in October 1999. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative premises in Pitsea with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ran out in 2101. Having 75 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
In 2014 we were contacted by Dr N Jones who, having bought a one bedroom flat in Pitsea in April 2004. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative flats in Pitsea with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 billed quarterly. The lease terminated in 2090. Taking into account 64 years left we estimated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including fees.