As the length of the unexpired term of a Moelfre residential lease lessens so does its value and therefore the value of your property. Where the lease has, beyond 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. Many flat owners in Moelfre will meet the qualifying criteria; that being said a lawyer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Moelfre with more than one hundred years outstanding on the lease are sometimes 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Moelfre leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold proprietor of a 2 bedroom apartment in Moelfre being marketed with a lease of just over sixty years unexpired. Ibrahim on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
In 2009 we were approached by Mr Liam James who, having acquired a purpose-built apartment in Moelfre in August 1997. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparative premises in Moelfre with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 collected yearly. The lease ran out in 2097. Given that there were 71 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
In 2014 we were e-mailed by Dr N Morris who, having took over the lease of a recently refurbished apartment in Moelfre in November 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar flats in Moelfre with a long lease were worth £249,200. The average amount of ground rent was £60 invoiced yearly. The lease ran out in 2077. Considering the 51 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £42,800 and £49,400 exclusive of fees.