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 extending the lease can escalate substantially once the remaining term is less than eighty years
Leasehold properties in Mold with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Yorkshire 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. |
Regardless 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.
Eli owned a studio flat in Mold being sold with a lease of just over 59 years unexpired. Eli informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Eli to exercise his statutory right. Eli obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
In 2013 we were approached by Mrs Aimee Gunderson who, having purchased a ground floor flat in Mold in August 2004. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative premises in Mold with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired on 1 October 2103. Given that there were 78 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
Mrs Daisy Smith took over the lease of a ground floor apartment in Mold in January 2009. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in Mold with a long lease were valued around £191,000. The mid-range amount of ground rent was £65 collected quarterly. The lease terminated in 2083. Having 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including expenses.