Why you should commence your Mold lease extension

Top reasons for lease extension now:

Increase your lease and increase your Mold property value

For anyone whose Mold home is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.

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

Leasehold properties in Mold with more than 100 years remaining on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may decide not to finance a property with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. Historically banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer 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

The conveyancers that we work with handle Mold lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Mold Lease Extension Example Cases:

Sophie, Mold, Flintshire,

Following lengthy discussions with the freeholder of her ground floor apartment in Mold, Sophie started the lease extension process as the 80 year deadline was rapidly nearing. The transaction was finalised in April 2012. The landlord’s charges were restricted to a tad over five hundred GBP.

Mold case:

Last October we were called by Mr and Mrs. O López , who purchased a first floor flat in Mold in June 2011. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparative residencies in Mold with a long lease were worth £176,200. The average ground rent payable was £65 invoiced yearly. The lease ran out in 2082. Given that there were 56 years unexpired we calculated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including expenses.

Mold case:

Last Christmas we were called by Mr and Mrs. O Hernández , who completed a basement flat in Mold in April 2005. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Similar properties in Mold with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 collected annually. The lease lapsed in 2093. Taking into account 67 years unexpired we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of costs.