Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Pitsea. Clearly, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease 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 right to extend the lease for a further ninety years under legislation. You should give careful deliberation before delaying your Pitsea lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Pitsea with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a freeholder in Pitsea,the lease extension experts 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.
Following protracted negotiations with the freeholder of her one bedroom apartment in Pitsea, Abigail started the lease extension process just as her lease was approaching the crucial 80-year deadline. The transaction was finalised in August 2013. The freeholder’s costs were negotiated to less than 500 GBP.
In 2011 we were phoned by Mr and Mrs. T François who, having took over the lease of a one bedroom flat in Pitsea in April 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Similar properties in Pitsea with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed in 2105. Given that there were 79 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
In 2012 we were phoned by Mr and Mrs. H Murphy who, having acquired a one bedroom apartment in Pitsea in November 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Pitsea with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced per annum. The lease ended on 7 May 2094. Taking into account 68 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.