Old Colwyn leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Old Colwyn enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Old Colwyn you really ought to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Following unsuccessful correspondence with the freeholder of her two bedroom flat in Old Colwyn, Kelsey started the lease extension process as the eighty year deadline was fast advancing. The transaction completed in May 2007. The freeholder’s costs were restricted to under 650 pounds.
In 2014 we were contacted by Mrs D Laurent who, having bought a ground floor apartment in Old Colwyn in August 2009. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Identical properties in Old Colwyn with an extended lease were worth £255,000. The average ground rent payable was £50 billed quarterly. The lease lapsed on 9 January 2095. Given that there were 70 years unexpired we estimated the premium to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of professional charges.
Mr and Mrs. S Scott bought a one bedroom flat in Old Colwyn in July 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar residencies in Old Colwyn with an extended lease were in the region of £246,800. The average ground rent payable was £60 collected every twelve months. The lease end date was in 2075. Taking into account 50 years remaining we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of legals.