When it comes to domestic leasehold property in Pitstone, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years remaining. Anyone in Pitstone with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once a lease has less than 80 years left, under the current legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Pitstone with over 100 years outstanding on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| Santander | |
| Skipton Building Society | |
| TSB | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Pitstone 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 conveyancer we work with provide it.
In the wake of 9 months of protracted negotiations with the freeholder of her studio flat in Pitstone, Sophia started the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension was concluded in March 2007. The freeholder’s costs were negotiated to approximately 500 pounds.
In 2013 we were called by Mr Aiden Adams who, having moved into a ground floor apartment in Pitstone in September 2010. The question was if we could estimate the price would likely be to extend the lease by ninety years. Identical residencies in Pitstone with an extended lease were worth £260,000. The average amount of ground rent was £50 invoiced quarterly. The lease lapsed on 10 April 2097. Given that there were 71 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Dr Austin Harris was assigned a lease of a basement flat in Pitstone in September 2011. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable homes in Pitstone with a long lease were valued about £254,200. The average ground rent payable was £60 collected annually. The lease ended in 2077. Having 51 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 plus fees.