Shotton leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Shotton will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain cases you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Shotton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shotton valuers.
Muhammad owned a 2 bedroom apartment in Shotton being sold with a lease of fraction over 61 years remaining. Muhammad informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last September we were approach by Dr Amelia Petit , who completed a newly refurbished flat in Shotton in July 1998. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparable residencies in Shotton with a long lease were worth £243,000. The average amount of ground rent was £65 billed yearly. The lease lapsed on 13 October 2088. Considering the 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including fees.
In 2011 we were e-mailed by Mr and Mrs. V Brooks who, having acquired a ground floor apartment in Shotton in April 2000. The question was if we could approximate the price would be to extend the lease by an additional years. Similar flats in Shotton with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 collected quarterly. The lease terminated in 2077. Having 52 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of legals.