There is no doubt about it a leasehold flat or house in Moelfre is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 100 years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner than later. The majority of flat owners in Moelfre will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Moelfre can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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.
Cameron was the the leasehold owner of a conversion apartment in Moelfre being marketed with a lease of just over sixty years unexpired. Cameron informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last June we were called by Mrs L Nelson , who completed a first floor apartment in Moelfre in November 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Moelfre with a long lease were worth £265,000. The average amount of ground rent was £50 collected quarterly. The lease elapsed on 27 October 2099. Having 74 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2011 we were contacted by Dr Alex Davies who, having bought a purpose-built apartment in Moelfre in March 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in Moelfre with a long lease were worth £166,400. The average ground rent payable was £60 collected yearly. The lease finished in 2079. Considering the 54 years left we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including fees.