Pitsea residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake Pitsea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Charlie was the the leasehold proprietor of a 2 bedroom flat in Pitsea on the market with a lease of a little over 61 years remaining. Charlie informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert legal guidance and secured an acceptable deal informally and sell the property.
Last Christmas we were e-mailed by Dr Rory García , who completed a one bedroom flat in Pitsea in July 2012. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Pitsea with a long lease were worth £210,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease finished on 27 April 2106. Having 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
Last Autumn we were approach by Mr Jonathan Dupont , who owned a one bedroom flat in Pitsea in October 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Similar flats in Pitsea with a long lease were valued around £275,000. The average amount of ground rent was £45 collected every twelve months. The lease concluded on 11 November 2095. Having 69 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.