As the the remaining lease term of a Colwyn Bay domestic lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of 100 years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner rather than later. The majority of flat owners in Colwyn Bay will meet the qualifying criteria; that being said a lawyer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you better control over the value of your Colwyn Bay leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Alexander, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Colwyn Bay. Having bought his flat 19 years ago, the length of the lease was of no importance. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Alexander extended the lease just ahead of time in March. Alexander and the freeholder subsequently settled on sum of £6,000 . If the lease had fallen below 80 years, the sum would have become more costly by at least £1,125.
In 2011 we were phoned by Dr Mason Edwards who, having moved into a studio flat in Colwyn Bay in April 1999. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable premises in Colwyn Bay with a long lease were worth £184,000. The average ground rent payable was £55 billed every twelve months. The lease ended in 2079. Having 53 years unexpired we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus expenses.
Dr M Sánchez was assigned a lease of a recently refurbished apartment in Colwyn Bay in September 2009. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative premises in Colwyn Bay with a long lease were valued around £290,000. The average ground rent payable was £45 billed per annum. The lease expired in 2099. Given that there were 73 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.