Mold residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Mold can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Mold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Luca, came precariously close to the 80-year threshold with the lease on his leasehold apartment in Mold. Having purchased his home two decades ago, the lease term was of no concern. Fortunately, he recognised he needed to take action soon on a lease extension. Luca extended the lease just under the wire in June. Luca and the freeholder via the management company ultimately settled on sum of £5,000 . If the lease had slid below 80 years, the figure would have gone up by at least £900.
In 2011 we were approached by Mr and Mrs. P Sharif who, having owned a studio apartment in Mold in March 2007. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative flats in Mold with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 collected yearly. The lease concluded on 24 April 2083. Considering the 57 years left we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.
Last November we were called by Mr I Hill , who owned a garden apartment in Mold in September 2012. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar homes in Mold with 100 year plus lease were valued around £245,000. The mid-range ground rent payable was £50 collected monthly. The lease ran out on 14 May 2094. Given that there were 68 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.