When it comes to residential leasehold property in Colwyn Bay, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Colwyn Bay with a lease approaching 81 years left should seriously think of extending it as soon as possible. When a lease has under eighty years left, under the current legislation the landlord is entitled to calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Colwyn Bay with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. 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 |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful discussions with the freeholder of her studio flat in Colwyn Bay, Bethan commenced the lease extension process as the 80 year mark was rapidly nearing. The transaction was concluded in January 2012. The landlord’s costs were restricted to slightly above 650 pounds.
Last Summer we were contacted by Mr and Mrs. A Nguyen , who was assigned a lease of a studio flat in Colwyn Bay in September 2009. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative homes in Colwyn Bay with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 invoiced yearly. The lease terminated on 19 January 2081. Taking into account 55 years left we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including fees.
Dr Louise Garcia moved into a one bedroom apartment in Colwyn Bay in April 2001. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative residencies in Colwyn Bay with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 19 August 2101. Given that there were 75 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.