Moelfre leases on residential deteriorating in value. Where your lease has about ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Moelfre will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 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 equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Off the back of protracted discussions with the freeholder of her basement apartment in Moelfre, Tia commenced the lease extension process as the 80 year deadline was fast approaching. The transaction completed in June 2015. The landlord’s charges were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. T Morris who, having owned a recently refurbished flat in Moelfre in April 2000. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable homes in Moelfre with a long lease were valued about £168,800. The average amount of ground rent was £60 collected annually. The lease expired on 11 July 2080. Considering the 55 years outstanding we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
Last Christmas we were called by Dr A Watson , who moved into a one bedroom flat in Moelfre in April 2012. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical residencies in Moelfre with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 billed yearly. The lease expired in 2091. Given that there were 66 years remaining we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.