Pitsea residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Pitsea can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Pitsea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Reuben was the the leasehold proprietor of a high value flat in Pitsea being sold with a lease of fraction over 72 years remaining. Reuben on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be due on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
In 2012 we were phoned by Mr P Edwards who, having owned a first floor flat in Pitsea in March 2009. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable flats in Pitsea with an extended lease were valued about £250,400. The average amount of ground rent was £65 billed monthly. The lease termination date was on 14 October 2089. Given that there were 64 years remaining we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of legals.
In 2010 we were e-mailed by Mrs Catherine Martin who, having acquired a purpose-built flat in Pitsea in May 2010. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative flats in Pitsea with a long lease were valued about £184,000. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed on 13 May 2078. Considering the 53 years left we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.