Main reasons to start your Shotton lease extension

Why you should commence your Shotton lease extension today:

A Shotton leasehold property depreciates with the years remaining on the lease.

Shotton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Shotton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Shotton you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Shotton flat owner with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay

Shotton property with a lease extension is almost the same value as a freehold

Leasehold premises in Shotton with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may not issue a mortgage on a short lease

Most mortgage companies insist on a lengthy amount of time remaining on a leasehold residence before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should be mindful that it is probable that someone intending to acquire your property in the future might well do, so if they are unable to obtain a mortgage, then the value of the property could be adversely impacted. In the last decade many banks and building societies have increased the required minimum lease length that they are prepared to accept

What makes us experts in Shotton lease extensions?

Irrespective of whether you are a tenant or a landlord in Shotton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shotton valuers.

Shotton Lease Extension Case Studies:

Mason, Shotton, Flintshire,

Mason owned a high value flat in Shotton on the market with a lease of a few days over 59 years left. Mason informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Mason to exercise his statutory right. Mason obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.

Shotton case:

Mr and Mrs. G Brown acquired a studio apartment in Shotton in January 2005. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Shotton with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 billed every twelve months. The lease expired on 19 October 2099. Given that there were 73 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.

Shotton case:

Mrs G Richardson took over the lease of a newly refurbished apartment in Shotton in May 2006. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Shotton with an extended lease were in the region of £235,600. The average amount of ground rent was £60 collected monthly. The lease elapsed on 11 October 2088. Given that there were 62 years left we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.