Colwyn Bay leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Colwyn Bay will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Colwyn Bay,the lease extension lawyers that we work with will always be willing 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.
Following protracted correspondence with the landlord of her studio flat in Colwyn Bay, Charlotte started the lease extension process just as the lease was coming close to the crucial eighty-year mark. The lease extension completed in October 2013. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were approach by Ms Erin Turner , who acquired a one bedroom flat in Colwyn Bay in May 2010. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable flats in Colwyn Bay with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected yearly. The lease finished on 22 August 2102. Having 76 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.
Last year we were called by Mr and Mrs. N Evans , who took over the lease of a garden apartment in Colwyn Bay in September 1998. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Colwyn Bay with an extended lease were worth £257,800. The average ground rent payable was £65 collected yearly. The lease terminated on 15 January 2091. Taking into account 65 years remaining we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus expenses.