With a residential leasehold property in Colwyn Bay, you are actually buying an entitlement to reside in a property for a set period of time. These days 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 should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Residents in Colwyn Bay with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has fewer than eighty years left, under the current legislation the freeholder is entitled to calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Colwyn Bay can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 Colwyn Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Leo, started to get close to the 80-year mark with the lease on his one bedroom apartment in Colwyn Bay. Having purchased his flat twenty years ago, the unexpired term was of no significance. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Leo extended the lease at the eleventh hour in April. Leo and the landlord who owned the flat above in the end settled on a premium of £5,500 . If the lease had descended lower than 80 years, the premium would have gone up by at least £1,050.
In 2011 we were phoned by Dr V Carter who, having bought a one bedroom apartment in Colwyn Bay in August 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Colwyn Bay with 100 year plus lease were worth £205,000. The average ground rent payable was £50 billed annually. The lease ran out in 2105. Having 79 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
In 2014 we were called by Dr F Scott who, having was assigned a lease of a one bedroom apartment in Colwyn Bay in April 1997. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative flats in Colwyn Bay with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease came to a finish on 1 August 2094. Given that there were 68 years left we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.