With a domestic leasehold property in Old Colwyn, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Anyone in Old Colwyn with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has under 80 years outstanding, under the relevant statute the landlord can calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| National Westminster Bank | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Old Colwyn,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Old Colwyn valuers.
Ben owned a high value flat in Old Colwyn being sold with a lease of a little over 59 years outstanding. Ben informally contacted his landlord being a well known Manchester-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 on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Ben to exercise his statutory right. Ben obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Last May we were e-mailed by Mr Riley Ali , who was assigned a lease of a basement apartment in Old Colwyn in June 2009. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Identical residencies in Old Colwyn with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished in 2098. Taking into account 72 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Last year we were called by Mr Aarav Martínez , who bought a basement apartment in Old Colwyn in August 1997. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical premises in Old Colwyn with 100 year plus lease were valued about £256,600. The average amount of ground rent was £60 billed monthly. The lease expired on 26 September 2078. Having 52 years remaining we calculated the premium to the landlord to extend the lease to be between £39,000 and £45,000 not including fees.