The only way is down when it comes to Colwyn Bay lease terms. Colwyn Bay properties that have a remaining term lower than eighty years will drop in market price at a rapid rate, and the cost of extending your lease will go up.
Leasehold residencies in Colwyn Bay with more than one hundred years remaining on the lease are often referred to as ‘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 freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with handle Colwyn Bay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Harry was the the leasehold owner of a 2 bedroom flat in Colwyn Bay being sold with a lease of a few days over 72 years outstanding. Harry informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Harry to exercise his statutory right. Harry obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Dr M Murphy owned a first floor apartment in Colwyn Bay in April 2007. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar residencies in Colwyn Bay with a long lease were valued around £243,000. The mid-range ground rent payable was £65 collected yearly. The lease elapsed on 19 March 2089. Considering the 63 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of expenses.
Mr Michael Ricardo was assigned a lease of a one bedroom apartment in Colwyn Bay in November 2012. The question was if we could approximate the price would be for a ninety year extension to my lease. Similar residencies in Colwyn Bay with an extended lease were valued about £181,600. The mid-range ground rent payable was £55 collected quarterly. The lease lapsed on 16 January 2078. Considering the 52 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.