With a long leasehold premises in Colwyn Bay, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years remaining. Leasehold owners in Colwyn Bay with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. Once a lease has less than eighty years left, under the current statute the landlord is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | 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. |
Irrespective of whether you are a tenant or a freeholder in Colwyn Bay,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Colwyn Bay valuers.
Trailing unsuccessful discussions with the landlord of her ground floor flat in Colwyn Bay, Rachel initiated the lease extension process just as the lease was nearing the all-important eighty-year deadline. The transaction completed in September 2007. The landlord’s costs were kept to an absolute minimum.
Last month we were called by Dr Benjamin Mason , who was assigned a lease of a purpose-built apartment in Colwyn Bay in September 2006. The question was if we could estimate the premium would be for a 90 year lease extension. Similar homes in Colwyn Bay with a long lease were worth £285,000. The average ground rent payable was £45 billed yearly. The lease expired in 2097. Having 71 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
In 2010 we were approached by Mr and Mrs. C James who, having completed a basement apartment in Colwyn Bay in August 2004. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar homes in Colwyn Bay with an extended lease were valued about £225,800. The mid-range ground rent payable was £60 collected quarterly. The lease expired in 2086. Taking into account 60 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 not including legals.