The only way is down when it comes to Shotton lease terms. Shotton flats that have a remaining term fewer than 80 years will drop in value even faster, and the cost to extend your lease will increase.
Leasehold residencies in Shotton with over 100 years outstanding 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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 | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Shotton can be a difficult process. We recommend you secure professional help from a lawyer 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 a wealth of experience 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.
Off the back of unsuccessful correspondence with the landlord of her garden apartment in Shotton, Leah commenced the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was concluded in July 2013. The landlord’s fees were kept to an absolute minimum.
In 2012 we were phoned by Ms J González who, having purchased a one bedroom apartment in Shotton in March 2002. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Comparative homes in Shotton with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected monthly. The lease expired on 27 January 2095. Taking into account 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
Last November we were phoned by Mr and Mrs. A Bailey , who owned a one bedroom flat in Shotton in January 1996. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Shotton with 100 year plus lease were worth £230,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease expired in 2084. Considering the 60 years left we estimated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 not including legals.