The re-sale value of a leasehold property in Moelfre depends on how long the lease has left to run. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed ahead of the eighty year threshold. Leasehold Reform legislation entitles Moelfre qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Moelfre with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service will provide you increased control over the value of your Moelfre leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Liam, came perilously near to the 80-year threshold with the lease on his two bedroom apartment in Moelfre. Having purchased his property two decades ago, the lease term was of no bearing. Luckily, he became aware that he would soon be paying an inflated amount for a lease extension. Liam was able to extend his lease just under the wire last May. Liam and the landlord who owned the flat above in the end settled on an amount of £5,000 . If he had missed the deadline, the price would have increased by at least £1,000.
Last Spring we were approach by Dr Jennifer Harris , who owned a basement apartment in Moelfre in April 2012. The question was if we could estimate the premium would be to prolong the lease by 90 years. Identical properties in Moelfre with 100 year plus lease were valued around £210,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated in 2087. Having 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including expenses.
In 2014 we were approached by Mr Ben García who, having bought a first floor flat in Moelfre in April 1999. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Moelfre with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease end date was on 9 July 2098. Taking into account 73 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.