The closer a domestic lease in Pitsea gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner than later. Most flat owners in Pitsea will qualify for this right; nevertheless a conveyancing solicitor should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Pitsea with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Pitsea 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 lawyer we work with provide it.
Toby owned a conversion apartment in Pitsea on the market with a lease of a few days over 72 years left. Toby informally contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Toby to exercise his statutory right. Toby obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. J Jones was assigned a lease of a garden flat in Pitsea in October 2004. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar flats in Pitsea with a long lease were valued around £233,200. The average ground rent payable was £60 billed quarterly. The lease concluded in 2086. Having 61 years remaining we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus fees.
In 2013 we were phoned by Mr and Mrs. O Girard who, having purchased a recently refurbished flat in Pitsea in November 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable premises in Pitsea with a long lease were valued about £166,800. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expired in 2075. Considering the 50 years outstanding we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.