The nearer a domestic lease in Mold nears to zero years unexpired, the more it reduces the value of the property. If the lease has, over 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in Mold will meet the qualifying criteria; however a conveyancing solicitor will be able to advise whether you qualify to extend your lease. In certain 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 generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with handle Mold lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing protracted negotiations with the freeholder of her basement flat in Mold, Daisy started the lease extension process as the eighty year mark was fast coming. The transaction completed in July 2011. The landlord’s fees were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. V Roberts who, having moved into a basement apartment in Mold in February 2005. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Mold with a long lease were worth £255,000. The average amount of ground rent was £50 billed monthly. The lease elapsed on 3 September 2096. Taking into account 71 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Last Autumn we were contacted by Mr and Mrs. F David , who took over the lease of a basement flat in Mold in February 2005. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Mold with an extended lease were worth £254,200. The mid-range amount of ground rent was £60 billed annually. The lease concluded in 2076. Having 51 years left we calculated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 plus expenses.