On the balance of probabilities if you own a flat in Old Colwyn you actually own a long leasehold interest over your property
Leasehold properties in Old Colwyn with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Old Colwyn 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.
Last Autumn James, started to get close to the 80-year threshold with the lease on his first floor flat in Old Colwyn. Having bought his home two decades ago, the length of the lease was of little relevance. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. James arranged for a lease extension at the eleventh hour in January. James and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If the lease had dropped to less than 80 years, the sum would have become more exhorbitant by at least £950.
Dr Andrew Gómez was assigned a lease of a first floor flat in Old Colwyn in August 2001. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar homes in Old Colwyn with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease terminated on 4 November 2100. Taking into account 75 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. E Smith was assigned a lease of a studio apartment in Old Colwyn in August 1998. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Old Colwyn with a long lease were worth £168,800. The average amount of ground rent was £60 invoiced yearly. The lease elapsed in 2080. Considering the 55 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of costs.