Pitstone leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the current lease dips below eighty years - otherwise a higher premium will be due. Leasehold owners in Pitstone will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Pitstone with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service gives you enhanced control over the value of your Pitstone leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Rory, started to get near to the eighty-year threshold with the lease on his basement flat in Pitstone. Having bought his home two decades ago, the length of the lease was of little bearing. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Rory arranged for a lease extension just under the wire last May. Rory and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If the lease had slid to less than 80 years, the amount would have become more costly by a minimum £1,150.
Mrs Kate Moore moved into a recently refurbished apartment in Pitstone in July 1999. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative residencies in Pitstone with 100 year plus lease were in the region of £208,200. The mid-range ground rent payable was £65 collected per annum. The lease elapsed on 4 February 2086. Considering the 61 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.
In 2010 we were contacted by Mr and Mrs. V Adams who, having acquired a newly refurbished flat in Pitstone in May 2008. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Comparable homes in Pitstone with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease expired in 2097. Given that there were 72 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.