The market value of a leasehold property in Shotton depends on how long the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded well before the eighty year cut off point. Statute enables Shotton qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Shotton can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Shotton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Harry, came very near to the 80-year threshold with the lease on his garden flat in Shotton. In buying his property 18 years previously, the lease term was of little concern. As luck would have it, he realised he needed to take action soon on a lease extension. Harry was able to extend his lease just under the wire last April. Harry and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If the lease had descended to less than eighty years, the amount would have become more costly by at least £1,000.
Dr Muhammad Phillips completed a one bedroom flat in Shotton in June 1995. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparative homes in Shotton with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2102. Taking into account 77 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
In 2012 we were approached by Ms U Robinson who, having took over the lease of a purpose-built flat in Shotton in May 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Shotton with a long lease were in the region of £267,600. The average ground rent payable was £65 collected annually. The lease concluded in 2092. Given that there were 67 years remaining we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 not including legals.