Shotton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the 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 70 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 put in place without delay
Leasehold premises in Shotton with more than one hundred 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 buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
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 wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Isaac was the the leasehold owner of a studio apartment in Shotton on the market with a lease of a little over 72 years unexpired. Isaac informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Isaac to exercise his statutory right. Isaac procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2010 we were called by Dr O Adams who, having moved into a garden flat in Shotton in July 2002. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Shotton with a long lease were worth £260,200. The average ground rent payable was £65 billed per annum. The lease terminated on 22 September 2092. Given that there were 66 years remaining we calculated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus professional charges.
Last November we were called by Mr and Mrs. R Pérez , who owned a studio flat in Shotton in October 2002. The question was if we could approximate the premium could be for a 90 year lease extension. Similar premises in Shotton with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed yearly. The lease expiry date was in 2081. Considering the 55 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus fees.