The re-sale value of a leasehold property in Mold is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be finalised well before the 80 year threshold. Leasehold Reform legislation enables Mold qualifying lessees to an additional term of ninety years over and above the remaining term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Mold can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Mold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Joshua, started to get close to the 80-year mark with the lease on his two bedroom flat in Mold. In buying his property 18 years ago, the unexpired term was of no bearing. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Joshua was able to extend his lease at the eleventh hour last July. Joshua and the freeholder via the management company ultimately settled on an amount of £6,000 . If the lease had slipped lower than eighty years, the amount would have gone up by at least £1,050.
In 2009 we were phoned by Mr and Mrs. G Williams who, having completed a first floor apartment in Mold in August 2007. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparative premises in Mold with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £55 invoiced monthly. The lease ran out in 2106. Having 80 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
In 2013 we were phoned by Mr and Mrs. E Davis who, having moved into a one bedroom flat in Mold in August 2001. The question was if we could estimate the premium would be to prolong the lease by 90 years. Comparative homes in Mold with a long lease were valued around £200,800. The average amount of ground rent was £65 collected annually. The lease lapsed on 9 February 2086. Considering the 60 years left we estimated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.