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 taken for granted in the early years due to the reduction being disguised by increases in the Shotton property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' on top of 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 The majority of flat owners in Shotton will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Shotton with over one hundred years unexpired 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a landlord in Shotton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shotton valuers.
Subsequent to unsuccessful negotiations with the freeholder of her studio flat in Shotton, Alexandra started the lease extension process just as her lease was nearing the critical eighty-year threshold. The lease extension was finalised in October 2013. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were e-mailed by Dr Callum Vincent , who took over the lease of a one bedroom flat in Shotton in March 2012. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Similar flats in Shotton with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed per annum. The lease lapsed on 26 October 2076. Considering the 51 years unexpired we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.
Mrs G Davies owned a studio flat in Shotton in August 2002. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical premises in Shotton with 100 year plus lease were valued around £280,000. The average amount of ground rent was £45 billed quarterly. The lease ended in 2096. Taking into account 71 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.