Mold leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Mold tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Mold you really ought to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Mold leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Mold,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mold valuers.
Last Summer Mason, came precariously close to the 80-year mark with the lease on his basement flat in Mold. Having purchased his flat two decades ago, the length of the lease was of no concern. Thankfully, he became aware that he needed to take action soon on a lease extension. Mason arranged for a lease extension at the eleventh hour in April. Mason and the freeholder subsequently agreed on sum of £6,000 . If the lease had dipped lower than 80 years, the figure would have increased by a minimum £900.
Mr and Mrs. H Jones owned a purpose-built flat in Mold in February 2011. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparable residencies in Mold with an extended lease were valued around £193,400. The mid-range ground rent payable was £65 collected quarterly. The lease came to a finish on 26 March 2083. Taking into account 59 years as a residual term we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including fees.
Mr and Mrs. M Torres was assigned a lease of a newly refurbished flat in Mold in July 2010. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative flats in Mold with a long lease were valued about £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated in 2094. Having 70 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.