Colwyn Bay leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Colwyn Bay tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Colwyn Bay you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Retaining our service gives you better control over the value of your Colwyn Bay leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Oscar, came seriously near to the eighty-year mark with the lease on his basement apartment in Colwyn Bay. In buying his property 19 years ago, the length of the lease was of little significance. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Oscar extended the lease at the eleventh hour in May. Oscar and the landlord who owned the flat above eventually settled on a premium of £5,500 . If the lease had dipped lower than eighty years, the premium would have become more costly by a minimum £850.
Mrs Shannon Campbell purchased a studio apartment in Colwyn Bay in January 2008. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical homes in Colwyn Bay with a long lease were worth £181,600. The average ground rent payable was £55 billed per annum. The lease ended on 8 February 2078. Considering the 52 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.
Dr Ella Bonnet moved into a newly refurbished apartment in Colwyn Bay in March 2002. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Identical residencies in Colwyn Bay with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 billed monthly. The lease finished on 14 April 2098. Given that there were 72 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.