The market value of Mold leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is below than eighty years
Leasehold properties in Mold with over 100 years remaining on the lease are sometimes 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 reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Mold,the lease extension experts 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.
Nathaniel owned a 2 bedroom flat in Mold on the market with a lease of a little over sixty years outstanding. Nathaniel on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Autumn we were e-mailed by Dr R Lewis , who moved into a one bedroom flat in Mold in May 1997. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar properties in Mold with a long lease were worth £285,000. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2105. Taking into account 79 years left we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
In 2010 we were approached by Dr John Michel who, having took over the lease of a first floor flat in Mold in August 1995. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar premises in Mold with 100 year plus lease were in the region of £193,400. The average amount of ground rent was £65 collected monthly. The lease termination date was on 27 February 2085. Considering the 59 years unexpired we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of legals.