Top reasons for Old Colwyn lease extension

Top reasons for lease extension now:

Increase your lease and increase your Old Colwyn property value

The re-sale value of a leasehold property in Old Colwyn depends on how long the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed prior to the eighty year mark. Leasehold Reform legislation enables Old Colwyn qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold premises in Old Colwyn with more than one hundred years outstanding 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 service charges merit it.

Mortgage lenders may not lend on a short lease

The trend since 2008 has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Old Colwyn lease extensions?

Irrespective of whether you are a tenant or a freeholder in Old Colwyn,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Old Colwyn valuers.

Old Colwyn Lease Extension Case Summaries:

Milo, Old Colwyn, Conwy,

Milo was the the leasehold owner of a high value flat in Old Colwyn being sold with a lease of a few days over sixty years remaining. Milo on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.

Old Colwyn case:

Dr Mia Davis completed a basement apartment in Old Colwyn in September 1999. We are asked if we could approximate the price could be for a 90 year lease extension. Similar properties in Old Colwyn with a long lease were in the region of £264,000. The mid-range ground rent payable was £60 billed annually. The lease elapsed on 13 February 2079. Given that there were 53 years unexpired we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 plus professional charges.

Old Colwyn case:

In 2014 we were e-mailed by Ms C Morel who, having took over the lease of a garden apartment in Old Colwyn in May 1995. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical homes in Old Colwyn with an extended lease were valued around £225,400. The mid-range amount of ground rent was £45 billed quarterly. The lease terminated on 11 September 2090. Taking into account 64 years remaining we calculated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of fees.