The value of Colwyn Bay leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than eighty years
Leasehold properties in Colwyn Bay with more than 100 years unexpired 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 buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service will provide you enhanced 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 want 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.
Subsequent to protracted discussions with the freeholder of her studio apartment in Colwyn Bay, Isabella started the lease extension process as the 80 year threshold was swiftly coming. The lease extension was finalised in July 2009. The freeholder’s costs were negotiated to slightly above 600 GBP.
Last month we were contacted by Dr Rosie Morris , who moved into a purpose-built flat in Colwyn Bay in June 2005. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable homes in Colwyn Bay with an extended lease were in the region of £218,400. The average amount of ground rent was £60 collected quarterly. The lease ran out on 13 January 2083. Considering the 59 years left we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 not including fees.
Mr T Wilson was assigned a lease of a studio apartment in Colwyn Bay in May 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Colwyn Bay with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease came to a finish in 2103. Having 79 years left we estimated the premium to the landlord to extend the lease to be within £7,600 and £8,800 not including fees.