The closer a residential lease in Colwyn Bay nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 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 extend the lease sooner rather than later. The majority of flat owners in Colwyn Bay will qualify for this right; however a lawyer should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Colwyn Bay with in excess of 100 years unexpired 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Colwyn Bay can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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.
14 months ago Leo, started to get close to the 80-year mark with the lease on his two bedroom flat in Colwyn Bay. Having bought his home two decades ago, the unexpired term was of little interest. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Leo extended the lease just in the nick of time last May. Leo and the landlord eventually settled on sum of £6,000 . If the lease had gone lower than 80 years, the figure would have escalated by a minimum £975.
Last Spring we were contacted by Dr I Brooks , who owned a garden flat in Colwyn Bay in October 2002. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar residencies in Colwyn Bay with a long lease were worth £280,000. The average amount of ground rent was £45 billed per annum. The lease terminated on 9 July 2096. Taking into account 70 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
Mr and Mrs. S Rodríguez completed a first floor flat in Colwyn Bay in November 1998. We are asked if we could estimate the price would be for a ninety year lease extension. Identical properties in Colwyn Bay with an extended lease were valued about £218,400. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed in 2085. Taking into account 59 years outstanding we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 not including fees.