When it comes to residential leasehold property in Mold, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Mold with a lease nearing 81 years left should seriously think of extending it sooner than later. Once a lease has below eighty years outstanding, under the current legislation the freeholder is entitled to calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Mold with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Mold leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful correspondence with the landlord of her two bedroom flat in Mold, Abigail initiated the lease extension process as the 80 year deadline was rapidly approaching. The lease extension completed in April 2013. The landlord’s fees were negotiated to a tad over 600 GBP.
Last Spring we were contacted by Dr E Nguyen , who owned a first floor flat in Mold in August 2004. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable premises in Mold with a long lease were worth £290,000. The average ground rent payable was £60 billed annually. The lease terminated on 14 May 2105. Taking into account 80 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.
Last Christmas we were called by Dr T Miller , who owned a newly refurbished flat in Mold in June 2004. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative premises in Mold with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced monthly. The lease lapsed on 13 July 2085. Taking into account 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 plus legals.