Why you should start your Mold lease extension

Top reasons for lease extension now:

A Mold lease depreciates with the years remaining on the lease.

Mold leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. Leasehold owners in Mold will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and procedures to follow once the process has started so it’s prudent to be guided by a lawyer during the process.

Mold property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Lending institutions will not grant a mortgage with a short lease

The trend since 2008 has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Mold lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Mold,the lease extension solicitors 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 Mold valuers.

Mold Lease Extension Example Cases:

Zachary, Mold, Flintshire

16 months ago Zachary, started to get near to the eighty-year threshold with the lease on his leasehold flat in Mold. In buying his home two decades ago, the lease term was of minimal relevance. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Zachary was able to extend his lease just ahead of time last September. Zachary and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If the lease had fallen below eighty years, the premium would have increased by a minimum £1,000.

Mold case:

Last Autumn we were approach by Dr B Dupont , who completed a ground floor flat in Mold in June 1995. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical flats in Mold with a long lease were valued around £261,600. The mid-range ground rent payable was £60 collected annually. The lease concluded in 2078. Considering the 52 years outstanding we estimated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 not including legals.

Mold case:

Last Autumn we were e-mailed by Dr G Thomas , who owned a ground floor apartment in Mold in September 2000. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar premises in Mold with 100 year plus lease were valued around £218,000. The mid-range amount of ground rent was £45 collected annually. The lease concluded on 27 August 2089. Taking into account 63 years remaining we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of costs.