With a long leasehold property in Mold, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years remaining. Residents in Mold with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has below eighty years remaining, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Mold,the lease extension experts 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.
After lengthy discussions with the landlord of her one bedroom apartment in Mold, Paige initiated the lease extension process as the eighty year deadline was quickly coming. The transaction was finalised in April 2012. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were called by Mr Luca Gray , who owned a ground floor apartment in Mold in March 2008. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Similar flats in Mold with 100 year plus lease were worth £191,000. The average amount of ground rent was £65 collected every twelve months. The lease lapsed on 6 April 2083. Given that there were 58 years outstanding we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus expenses.
Dr Isobel Howard took over the lease of a basement apartment in Mold in February 2000. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative homes in Mold with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease concluded in 2094. Having 69 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.