Shotton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Shotton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Shotton you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Shotton with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 will provide you better control over the value of your Shotton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her two bedroom apartment in Shotton, Georgia started the lease extension process as the eighty year deadline was rapidly approaching. The lease extension was finalised in April 2014. The landlord’s charges were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. C David who, having moved into a one bedroom flat in Shotton in November 1999. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable residencies in Shotton with a long lease were worth £300,000. The average ground rent payable was £50 invoiced quarterly. The lease ended on 22 June 2101. Having 76 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.
Mr J Kelly completed a ground floor flat in Shotton in February 2008. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Similar premises in Shotton with a long lease were worth £257,800. The average amount of ground rent was £65 invoiced monthly. The lease lapsed in 2090. Having 65 years outstanding we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of professional charges.