With a residential leasehold premises in Shotton, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years left. Leasehold owners in Shotton with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once the lease term has under eighty years remaining, under the relevant legislation the freeholder can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Shotton with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Shotton leasehold, as your property will be more valuable and saleable in terms of 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.
Benjamin was the the leasehold owner of a high value flat in Shotton being sold with a lease of a few days over 72 years remaining. Benjamin on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were phoned by Mr U Leroy who, having was assigned a lease of a first floor apartment in Shotton in August 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in Shotton with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded on 20 October 2102. Given that there were 76 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.
Last August we were phoned by Mr S Ward , who purchased a ground floor apartment in Shotton in June 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Shotton with a long lease were in the region of £252,800. The average amount of ground rent was £65 collected every twelve months. The lease finished on 7 October 2091. Given that there were 65 years left we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including expenses.