Moelfre 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 which permits qualifying Moelfre residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Moelfre you would be well advised to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Moelfre leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Moelfre with more than 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Moelfre lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Jonathan, started to get near to the eighty-year mark with the lease on his first floor flat in Moelfre. In buying his home 18 years ago, the unexpired term was of no concern. by good luck, he became aware that he would soon be paying way over the odds for a lease extension. Jonathan extended the lease at the eleventh hour in August. Jonathan and the landlord ultimately settled on sum of £6,000 . If he not met the deadline, the sum would have gone up by a minimum £950.
In 2013 we were e-mailed by Dr Isabel Morel who, having moved into a recently refurbished apartment in Moelfre in September 2004. The question was if we could approximate the price would likely be for a ninety year lease extension. Similar residencies in Moelfre with 100 year plus lease were valued about £246,800. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out on 16 January 2075. Taking into account 50 years left we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus expenses.
Last Autumn we were phoned by Mr Felix Nelson , who moved into a purpose-built apartment in Moelfre in November 2001. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Moelfre with an extended lease were in the region of £203,200. The average amount of ground rent was £65 collected per annum. The lease terminated in 2086. Considering the 61 years remaining we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including fees.