With a residential leasehold premises in Old Colwyn, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Leasehold owners in Old Colwyn with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has under 80 years remaining, under the current statute the freeholder can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Old Colwyn with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Old Colwyn can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Old Colwyn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Nathaniel, came perilously close to the 80-year mark with the lease on his garden flat in Old Colwyn. In buying his property twenty years ago, the length of the lease was of no importance. Luckily, he realised he needed to take steps soon on a lease extension. Nathaniel extended the lease at the eleventh hour last March. Nathaniel and the freeholder subsequently agreed on an amount of £5,000 . If he not met the deadline, the price would have become more exhorbitant by at least £950.
Last Spring we were approach by Mr and Mrs. O Gray , who acquired a basement flat in Old Colwyn in September 2009. The question was if we could estimate the price would be for a 90 year lease extension. Similar properties in Old Colwyn with a long lease were worth £254,200. The average amount of ground rent was £60 collected every twelve months. The lease finished on 3 September 2076. Given that there were 51 years remaining we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus costs.
In 2012 we were contacted by Mr Jamie Sharif who, having was assigned a lease of a purpose-built apartment in Old Colwyn in October 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Old Colwyn with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease end date was on 14 March 2087. Taking into account 62 years left we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus legals.