For those whose Mold flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold residencies in Mold with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective 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 experience and the close ties they enjoy with Mold valuers.
Last year Michael, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Mold. Having bought his home two decades ago, the length of the lease was of minimal significance. Thankfully, he realised he needed to take steps soon on a lease extension. Michael was able to extend his lease just in the nick of time in May. Michael and the landlord subsequently agreed on a premium of £6,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £1,100.
Last month we were called by Mr I James , who purchased a ground floor flat in Mold in July 2006. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar premises in Mold with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 billed monthly. The lease elapsed on 10 March 2102. Given that there were 76 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
In 2009 we were e-mailed by Mr Finley White who, having moved into a garden flat in Mold in June 1996. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Similar flats in Mold with an extended lease were worth £176,200. The average amount of ground rent was £65 collected monthly. The lease expiry date was in 2082. Having 56 years outstanding we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus professional charges.