Old Colwyn leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. Flat owners in Old Colwyn will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Old Colwyn with over 100 years unexpired 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you enhanced control over the value of your Old Colwyn leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Hugo, came perilously near to the eighty-year threshold with the lease on his leasehold apartment in Old Colwyn. Having purchased his flat 18 years previously, the unexpired term was of no interest. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Hugo extended the lease just in the nick of time last July. Hugo and the freeholder ultimately agreed on a premium of £6,000 . If the lease had gone below 80 years, the premium would have become more costly by at least £1,125.
Dr Jade Edwards owned a one bedroom flat in Old Colwyn in April 2009. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Old Colwyn with a long lease were valued about £200,800. The mid-range amount of ground rent was £65 billed annually. The lease expired on 13 June 2086. Having 60 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus expenses.
Dr Lucas Edwards was assigned a lease of a one bedroom apartment in Old Colwyn in September 1999. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Old Colwyn with an extended lease were valued about £255,000. The average ground rent payable was £50 invoiced quarterly. The lease expiry date was on 27 September 2097. Having 71 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.