Colwyn Bay leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Colwyn Bay residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Colwyn Bay you should check if your lease has between seventy and 90 years remaining. There are good reasons why a Colwyn Bay flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Colwyn Bay with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 get professional help from a lawyer 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 dealing with 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.
Last year Tyler, came perilously near to the eighty-year threshold with the lease on his first floor flat in Colwyn Bay. Having bought his flat 18 years ago, the length of the lease was of no bearing. Luckily, it dawned on him that he needed to take action soon on a lease extension. Tyler arranged for a lease extension just under the wire last January. Tyler and the freeholder eventually agreed on an amount of £5,000 . If the lease had fallen below eighty years, the premium would have escalated by a minimum £950.
Mr Y Walker bought a recently refurbished apartment in Colwyn Bay in March 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable homes in Colwyn Bay with 100 year plus lease were in the region of £218,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ended on 27 June 2085. Having 59 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of fees.
In 2014 we were e-mailed by Dr Courtney Moore who, having owned a one bedroom flat in Colwyn Bay in June 2006. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparative premises in Colwyn Bay with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced monthly. The lease ran out on 19 March 2105. Considering the 79 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.