The re-sale value of a leasehold property in Colwyn Bay is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be finalised prior to the 80 year threshold. Leasehold Reform legislation entitles Colwyn Bay qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
Archie owned a conversion apartment in Colwyn Bay being marketed with a lease of fraction over 61 years unexpired. Archie informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Archie to exercise his statutory right. Archie obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Last Winter we were phoned by Dr A Wright , who owned a one bedroom apartment in Colwyn Bay in May 2004. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical homes in Colwyn Bay with 100 year plus lease were in the region of £275,000. The average ground rent payable was £45 collected yearly. The lease expired in 2094. Considering the 69 years remaining we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
Mr and Mrs. G López bought a first floor flat in Colwyn Bay in March 2009. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative homes in Colwyn Bay with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease expired in 2083. Taking into account 58 years unexpired we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of legals.