Shotton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your 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 should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Shotton flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Shotton with more than 100 years left on the lease are sometimes referred to as ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| Godiva Mortgages | 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. |
Lease extensions in Shotton can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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.
Dexter owned a conversion apartment in Shotton being sold with a lease of just over 72 years left. Dexter on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr R Lambert moved into a basement flat in Shotton in June 2009. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar properties in Shotton with an extended lease were valued around £280,000. The mid-range amount of ground rent was £45 collected yearly. The lease ended on 11 March 2096. Given that there were 70 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
Ms C Laurent purchased a basement flat in Shotton in February 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Shotton with an extended lease were valued about £218,400. The mid-range ground rent payable was £60 billed yearly. The lease lapsed in 2085. Given that there were 59 years left we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 plus legals.