Chances are that if you own a flat in Mold you actually own a long leasehold interest over your property
Leasehold premises in Mold with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The lawyers that we work with procure 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 lawyer we work with provide it.
Last Winter Henry, started to get near to the eighty-year mark with the lease on his leasehold apartment in Mold. In buying his flat two decades ago, the unexpired term was of no relevance. As luck would have it, he realised he would soon be paying way over the odds for a lease extension. Henry was able to extend his lease just ahead of time in August. Henry and the freeholder ultimately settled on an amount of £5,500 . If the lease had gone to less than eighty years, the sum would have gone up by at least £950.
Last year we were approach by Dr Hugo Ward , who owned a garden flat in Mold in March 2005. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparable properties in Mold with 100 year plus lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected every twelve months. The lease termination date was on 6 September 2085. Given that there were 59 years remaining we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.
Last September we were approach by Dr Isabelle Patel , who was assigned a lease of a first floor apartment in Mold in June 2004. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar premises in Mold with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 invoiced monthly. The lease finished in 2096. Given that there were 70 years unexpired we approximated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 exclusive of professional charges.