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 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded well before the 80 year mark. Current legislation enables Pitsea qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Pitsea with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
Lender | Requirement |
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Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
Chelsea 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. |
Godiva Mortgages | 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. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Pitsea,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pitsea valuers.
Following protracted correspondence with the freeholder of her purpose-built flat in Pitsea, Catherine commenced the lease extension process just as the lease was coming close to the critical eighty-year deadline. The legal work completed in October 2013. The freeholder’s charges were restricted to about six hundred pounds.
Mr and Mrs. G Rivera took over the lease of a one bedroom apartment in Pitsea in November 2003. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Similar flats in Pitsea with a long lease were valued about £166,800. The average ground rent payable was £50 billed annually. The lease came to a finish on 21 May 2074. Taking into account 50 years remaining we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus professional charges.
Dr J Hernández moved into a garden apartment in Pitsea in May 1999. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Pitsea with an extended lease were in the region of £280,000. The average amount of ground rent was £45 collected annually. The lease terminated in 2094. Taking into account 70 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.