Mold leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Mold residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Mold you should investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Mold with over one hundred years outstanding 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Mold can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 Winter Edward, came perilously close to the eighty-year threshold with the lease on his garden apartment in Mold. In buying his home two decades ago, the unexpired term was of no relevance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Edward arranged for a lease extension just in the nick of time in May. Edward and the freeholder ultimately settled on an amount of £5,000 . If he failed to meet the deadline, the premium would have increased by a minimum £950.
Last Spring we were phoned by Dr Jennifer Evans , who completed a first floor apartment in Mold in July 2003. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar premises in Mold with a long lease were worth £280,000. The mid-range ground rent payable was £55 collected yearly. The lease came to a finish in 2103. Having 77 years left we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
Mr and Mrs. T Lee purchased a basement apartment in Mold in October 2002. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative premises in Mold with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 collected every twelve months. The lease concluded in 2083. Taking into account 57 years left we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.