Shotton residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold properties in Shotton with over one hundred years outstanding on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure Shotton 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.
Blake was the the leasehold proprietor of a high value flat in Shotton being marketed with a lease of fraction over fifty eight years remaining. Blake on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Winter we were phoned by Mrs Isabella Díaz , who completed a recently refurbished flat in Shotton in January 1995. We are asked if we could approximate the price would be for a ninety year lease extension. Similar residencies in Shotton with 100 year plus lease were worth £208,600. The average ground rent payable was £60 collected annually. The lease elapsed on 7 July 2083. Given that there were 57 years unexpired we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus legals.
Mr and Mrs. C Moore completed a one bedroom apartment in Shotton in April 2002. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparable flats in Shotton with a long lease were in the region of £200,000. The average ground rent payable was £50 collected monthly. The lease elapsed on 11 August 2103. Given that there were 77 years remaining we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.