Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Moelfre. Clearly, the term of lease left shortens over time. This is often overlooked and only raises itself as an issue when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Moelfre have the legal entitlement to extend the lease for an additional 90 years under statute. You should give due attention before putting off your Moelfre lease extension. Putting off the cost now simply increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Lease extensions in Moelfre can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Moelfre lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew owned a studio flat in Moelfre on the market with a lease of fraction over 72 years remaining. Matthew on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Matthew to invoke his statutory right. Matthew procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2011 we were approached by Mr D Robinson who, having took over the lease of a first floor apartment in Moelfre in November 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar flats in Moelfre with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 billed yearly. The lease terminated in 2083. Given that there were 57 years unexpired we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.
Dr Y Garcia moved into a basement flat in Moelfre in September 2005. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable flats in Moelfre with a long lease were in the region of £245,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ended on 18 April 2094. Given that there were 68 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.