Main reasons to commence your Shotton lease extension
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Main reasons to commence your Shotton lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/shotton">Shotton</a> property value </h4>
<p> Unfortunately that a Shotton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Shotton property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining dips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Shotton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
<h4>Shotton property with a lease extension is almost the same value as a freehold</h4>
<p> It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly 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 ahead.
<h4>Banks and Building Societies may decide not to issue a mortgage on a short lease</h4> Mortgage Lenders differ in their lending requirements. Some draw the line at seventy five years left on the lease; others may be content with anything with more than 70 years. With less than sixty years, it may be difficult to get a mortgage in the first place.
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<th> Requirement
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<td>Chelsea Building Society</td>
<td> 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.
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<td>Godiva Mortgages</td>
<td> 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.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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Why use us for your lease extension in Shotton? </h4>
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Lease extensions in Shotton can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
<p>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 a wealth of experience 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.
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Shotton Lease Extension Case Summaries:
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<h5> Elijah, Shotton, Flintshire,</h5>
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Elijah owned a conversion flat in Shotton being sold with a lease of a few days over 59 years outstanding. Elijah on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert advice and secured satisfactory resolution informally and sell the flat.
<h5>Shotton case:</h5>
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In 2009 we were contacted by Mrs V Jones who, having owned a recently refurbished apartment in Shotton in November 1997. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar properties in Shotton with 100 year plus lease were worth £201,200. The mid-range amount of ground rent was £55 collected yearly. The lease expired in 2082. Given that there were 56 years unexpired we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including professional charges.
<h5>Shotton case:</h5>
<p> Mr and Mrs. R Díaz acquired a first floor flat in Shotton in May 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparable flats in Shotton with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expiry date was on 1 January 2102. Having 76 years remaining we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.
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