Why you should commence your Mold lease extension

Main reasons to commence your Mold lease extension today:

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

The 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 increase substantially once the remaining term is below than 80 years

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

It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to issue a mortgage with a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to get nervous at around 75 years. This will cause difficulties once you need to dispose of or refinance your property as it will be effectively unmortgageable. Even though you may have no imminent plan to sell but when you do your purchaser must wait 2 years before being able to commence the legal procedures for an extension to the lease.

What makes us experts in Mold lease extensions?

Irrespective of whether you are a tenant or a freeholder in Mold,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mold valuers.

Mold Lease Extension Example Cases:

Poppy, Mold, Flintshire,

Trailing lengthy negotiations with the landlord of her two bedroom flat in Mold, Poppy initiated the lease extension process as the 80 year mark was quickly advancing. The transaction completed in October 2010. The landlord’s costs were kept to an absolute minimum.

Mold case:

Dr Joshua Mitchell moved into a first floor flat in Mold in April 2007. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Mold with 100 year plus lease were worth £200,800. The average ground rent payable was £65 invoiced quarterly. The lease terminated in 2086. Considering the 60 years unexpired we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 plus costs.

Mold case:

In 2013 we were approached by Mr and Mrs. V Norbert who, having acquired a ground floor flat in Mold in August 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable premises in Mold with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed annually. The lease ended in 2097. Given that there were 71 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.