There is no doubt about it a leasehold flat or house in Colwyn Bay is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner rather than later. Most flat owners in Colwyn Bay will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Colwyn Bay with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
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.
After lengthy correspondence with the landlord of her leasehold flat in Colwyn Bay, Jasmine initiated the lease extension process just as the lease was nearing the crucial eighty-year deadline. The lease extension was concluded in June 2006. The freeholder’s fees were restricted to less than 600 pounds.
Mr I Girard acquired a ground floor flat in Colwyn Bay in July 2001. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative homes in Colwyn Bay with an extended lease were in the region of £270,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease end date was on 23 January 2093. Considering the 68 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
Ms H Nguyen acquired a purpose-built apartment in Colwyn Bay in August 2003. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Identical premises in Colwyn Bay with an extended lease were in the region of £208,600. The average amount of ground rent was £60 collected per annum. The lease ended in 2082. Taking into account 57 years remaining we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.