Main reasons to start your Shotton lease extension

Top reasons for lease extension now:

A Shotton leasehold property depreciates with the years remaining on the lease.

Shotton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Shotton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Shotton you must check if your lease has between seventy and 90 years left. There are compelling reasons why a Shotton flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Shotton with over 100 years outstanding on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may decide not to loan monies with a short lease

Nearly all mortgage companies will be unwilling to lend on a lease with under seventy years unexpired - although this varies between mortgage companies. A purchaser will likely encounter difficulties to obtain a mortgage and this could result in your Shotton property becoming difficult to dispose of or remortgage.

Get in touch with one of our Shotton lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Shotton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shotton valuers.

Shotton Lease Extension Example Cases:

Max, Shotton, Flintshire,

Max owned a 2 bedroom apartment in Shotton being marketed with a lease of fraction over fifty eight years remaining. Max on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.

Shotton case:

Last Christmas we were approach by Mrs Laura López , who completed a first floor apartment in Shotton in June 1995. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative homes in Shotton with 100 year plus lease were valued around £191,400. The average ground rent payable was £55 billed monthly. The lease lapsed in 2080. Taking into account 54 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of expenses.

Shotton case:

In 2010 we were contacted by Mr Leo Stewart who, having completed a newly refurbished apartment in Shotton in March 2004. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Shotton with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 billed annually. The lease came to a finish in 2100. Given that there were 74 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.