The only way is down when it comes to Pitstone lease terms. Pitstone leaseholds that have a lease term shorter than eighty years will reduce in value even faster, and the cost of extending your lease will go up.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you increased control over the value of your Pitstone leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Cameron, came precariously close to the eighty-year mark with the lease on his purpose- built apartment in Pitstone. In buying his home 18 years previously, the lease term was of minimal importance. Thankfully, he recognised he needed to take steps soon on a lease extension. Cameron arranged for a lease extension at the eleventh hour in March. Cameron and the freeholder via the managing agents eventually settled on the final figure of £5,500 . If the lease had fallen lower than 80 years, the price would have escalated by at least £850.
Last Christmas we were called by Dr K Flores , who completed a ground floor flat in Pitstone in November 2007. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Pitstone with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 billed quarterly. The lease lapsed in 2090. Considering the 64 years as a residual term we estimated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of costs.
Mrs Isobel Jones owned a newly refurbished flat in Pitstone in November 2007. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar flats in Pitstone with a long lease were in the region of £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease lapsed in 2101. Having 75 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.