Pitstone leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Pitstone tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Pitstone you should see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Pitstone leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Pitstone leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her ground floor flat in Pitstone, Phoebe initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work completed in February 2015. The freeholder’s charges were negotiated to a tad over 550 pounds.
In 2014 we were approached by Mr and Mrs. F Davis who, having moved into a ground floor flat in Pitstone in October 2000. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar premises in Pitstone with 100 year plus lease were in the region of £237,600. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out in 2092. Taking into account 67 years unexpired we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of fees.
Last month we were phoned by Dr Rhiannon Leroy , who completed a first floor flat in Pitstone in March 2002. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative premises in Pitstone with an extended lease were valued around £280,000. The mid-range ground rent payable was £55 collected quarterly. The lease termination date was on 9 November 2103. Considering the 78 years outstanding we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.