When it comes to residential leasehold property in Moelfre, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Moelfre with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once the lease term has less than 80 years remaining, under the current legislation the freeholder can calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Moelfre with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Moelfre,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Moelfre valuers.
Trailing unsuccessful discussions with the freeholder of her purpose-built apartment in Moelfre, Danielle initiated the lease extension process just as the lease was coming close to the all-important 80-year deadline. The lease extension completed in June 2008. The freeholder’s costs were kept to an absolute minimum.
Mr Leo Martinez acquired a purpose-built flat in Moelfre in January 2006. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Moelfre with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease finished on 1 August 2095. Considering the 69 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
In 2011 we were phoned by Mr and Mrs. E Harris who, having was assigned a lease of a recently refurbished apartment in Moelfre in January 2003. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparable properties in Moelfre with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease finished on 7 June 2106. Considering the 80 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.