Colwyn Bay residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure 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 conveyancer we work with provide it.
After protracted discussions with the landlord of her two bedroom flat in Colwyn Bay, Chelsea initiated the lease extension process just as her lease was coming close to the critical 80-year mark. The lease extension was concluded in May 2010. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were called by Dr Ali Jackson , who bought a newly refurbished apartment in Colwyn Bay in May 1996. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparable properties in Colwyn Bay with a long lease were worth £290,000. The average amount of ground rent was £45 collected per annum. The lease terminated in 2098. Considering the 73 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.
In 2010 we were approached by Mr Mason Richardson who, having was assigned a lease of a purpose-built flat in Colwyn Bay in September 1997. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar residencies in Colwyn Bay with a long lease were valued around £235,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease lapsed on 27 September 2087. Given that there were 62 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including fees.