The only way is down when it comes to Shotton lease terms. Shotton flats that have a residual term shorter than 80 years will drop in value even faster, and the cost to extend your lease will rise.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Shotton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Shotton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the freeholder of her ground floor flat in Shotton, Millie started the lease extension process as the eighty year deadline was swiftly nearing. The transaction was finalised in June 2009. The landlord’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Dr B Peterson who, having completed a garden flat in Shotton in February 2011. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative properties in Shotton with 100 year plus lease were worth £280,000. The average ground rent payable was £45 billed yearly. The lease lapsed on 11 October 2093. Considering the 69 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
In 2009 we were called by Mr and Mrs. Y Cooper who, having bought a garden apartment in Shotton in June 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Shotton with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease finished in 2082. Considering the 58 years remaining we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.