The only way is down when it comes to Old Colwyn lease terms. Old Colwyn properties that have a residual term lower than eighty years will de-escalate in value at a rapid rate, and the cost of extending your lease will increase.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Old Colwyn leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ryan owned a studio flat in Old Colwyn being marketed with a lease of fraction over 59 years remaining. Ryan informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr and Mrs. G Girard acquired a first floor flat in Old Colwyn in April 2008. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar properties in Old Colwyn with an extended lease were worth £275,000. The average amount of ground rent was £55 collected annually. The lease lapsed on 9 November 2103. Given that there were 77 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
Last Christmas we were called by Mr and Mrs. Y Johnson , who moved into a basement flat in Old Colwyn in June 2008. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar properties in Old Colwyn with an extended lease were in the region of £183,600. The average ground rent payable was £65 billed yearly. The lease ended on 6 September 2083. Considering the 57 years remaining we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including fees.