The market value of a leasehold property in Mold depends on how long the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded ahead of the 80 year mark. Current legislation enables Mold qualifying lessees to an additional term of ninety years in addition to the existing term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Mold with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Mold can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
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 procuring Mold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Lucas, came perilously close to the eighty-year mark with the lease on his purpose- built flat in Mold. Having purchased his home twenty years previously, the lease term was of little bearing. As luck would have it, it dawned on him that he would soon be paying an inflated amount for a lease extension. Lucas was able to extend his lease just in the nick of time in September. Lucas and the freeholder subsequently agreed on sum of £5,500 . If the lease had slid below 80 years, the premium would have gone up by at least £1,150.
Dr S Kelly was assigned a lease of a first floor apartment in Mold in June 2012. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Mold with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 collected annually. The lease lapsed on 13 April 2098. Considering the 72 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
Last Christmas we were e-mailed by Mr M Ward , who owned a recently refurbished apartment in Mold in June 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical flats in Mold with a long lease were worth £261,600. The mid-range amount of ground rent was £60 billed quarterly. The lease expired in 2078. Taking into account 52 years unexpired we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including costs.