Colwyn Bay leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets 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 70 and ninety years left. There are good reasons why a Colwyn Bay leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay
Leasehold premises in Colwyn Bay with in excess of one hundred years remaining on the lease are sometimes referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a landlord in Colwyn Bay,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Colwyn Bay valuers.
Half a year ago Omar, started to get near to the eighty-year mark with the lease on his one bedroom flat in Colwyn Bay. In buying his flat two decades ago, the lease term was of little importance. Thankfully, he recognised he would imminently be paying an inflated amount for Extending the lease. Omar extended the lease at the eleventh hour in January. Omar and the freeholder subsequently agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £875.
Last Christmas we were called by Ms Maisie García , who moved into a first floor apartment in Colwyn Bay in August 2009. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar premises in Colwyn Bay with 100 year plus lease were in the region of £267,600. The mid-range amount of ground rent was £65 collected annually. The lease came to a finish on 13 October 2093. Having 67 years remaining we calculated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 plus fees.
Mr L André took over the lease of a studio flat in Colwyn Bay in November 1999. We are asked if we could approximate the premium could be to extend the lease by ninety years. Similar homes in Colwyn Bay with an extended lease were in the region of £201,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease came to a finish on 12 March 2082. Given that there were 56 years left we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.