On the balance of probabilities if you own a flat in Mold you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Mold,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mold valuers.
Callum owned a studio apartment in Mold on the market with a lease of fraction over fifty eight years outstanding. Callum informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Callum to exercise his statutory right. Callum procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
In 2012 we were e-mailed by Mr and Mrs. E Torres who, having took over the lease of a basement apartment in Mold in August 2009. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable homes in Mold with a long lease were worth £264,000. The average amount of ground rent was £60 invoiced every twelve months. The lease concluded in 2079. Having 53 years unexpired we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 not including costs.
Dr G Morgan moved into a first floor flat in Mold in August 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Mold with 100 year plus lease were worth £225,400. The average ground rent payable was £45 collected annually. The lease lapsed in 2090. Considering the 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 not including expenses.