With a long leasehold premises in Shotton, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years left. Leasehold owners in Shotton with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years outstanding, under the current statute the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same 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 ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| 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 |
Using 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the landlord of her leasehold flat in Shotton, Gemma commenced the lease extension process as the eighty year deadline was quickly advancing. The lease extension was finalised in November 2014. The landlord’s costs were kept to an absolute minimum.
In 2010 we were contacted by Mrs G Martin who, having took over the lease of a ground floor apartment in Shotton in May 2007. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Identical homes in Shotton with an extended lease were valued about £233,200. The mid-range amount of ground rent was £60 billed per annum. The lease expired on 8 January 2087. Having 61 years outstanding we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including expenses.
Mr and Mrs. N Roux took over the lease of a purpose-built apartment in Shotton in November 2008. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Shotton with a long lease were valued around £166,800. The mid-range amount of ground rent was £50 billed yearly. The lease came to a finish on 18 October 2076. Given that there were 50 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus legals.