When it comes to domestic leasehold property in Mold, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years remaining. Residents in Mold with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When a lease has fewer than eighty years outstanding, under the current Act the freeholder can calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Mold with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective 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.
After lengthy negotiations with the landlord of her purpose-built flat in Mold, Aimee initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was finalised in August 2012. The freeholder’s costs were kept to an absolute minimum.
Last year we were approach by Dr S Garcia , who bought a studio apartment in Mold in February 1997. We are asked if we could estimate the price would be to extend the lease by an additional years. Similar residencies in Mold with a long lease were valued around £227,800. The average amount of ground rent was £45 billed annually. The lease ended on 22 May 2091. Having 65 years left we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
In 2011 we were called by Mrs U Bernard who, having completed a one bedroom apartment in Mold in November 2004. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Mold with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease ended in 2102. Taking into account 76 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.