Main reasons to commence your Colwyn Bay lease extension

Why you should start your Colwyn Bay lease extension today:

Increase your lease and increase your Colwyn Bay property value

Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Colwyn Bay. Inevitably, the term of lease left reduces over time. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Colwyn Bay have the legal entitlement to extend the lease for a further 90 years under statute. Do give due deliberation before delaying your Colwyn Bay lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension

An extended lease has roughly the same value as a freehold

It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.

Banks and Building Societies will not loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get nervous at around 75 years. This may cause difficulties when you need to dispose of or remortgage your property as it will be practically unmortgageable. You may have no immediate plan to sell but when you do your purchaser will need to hold off for a couple of years before they can exercise the right to a an extension to the lease.

Get in touch with one of our Colwyn Bay lease extension solicitors or enfranchisement solicitors

Using 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 terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Colwyn Bay Lease Extension Case Studies:

Jamie, Colwyn Bay, Conwy,

Jamie owned a conversion apartment in Colwyn Bay on the market with a lease of just over 72 years unexpired. Jamie on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.

Colwyn Bay case:

In 2014 we were called by Mr and Mrs. N Bennett who, having completed a purpose-built apartment in Colwyn Bay in November 2010. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical residencies in Colwyn Bay with 100 year plus lease were in the region of £201,200. The mid-range ground rent payable was £55 collected annually. The lease lapsed in 2082. Given that there were 56 years outstanding we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.

Colwyn Bay case:

Last Winter we were phoned by Dr Y Dupont , who purchased a ground floor apartment in Colwyn Bay in April 2008. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparable residencies in Colwyn Bay with a long lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced annually. The lease elapsed on 15 August 2102. Taking into account 76 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.