With a residential leasehold property in Old Colwyn, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are fewer than 80 years left. Leasehold owners in Old Colwyn with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years left, under the relevant Act the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Old Colwyn with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Old Colwyn can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Old Colwyn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful negotiations with the freeholder of her basement apartment in Old Colwyn, Natalie started the lease extension process just as her lease was approaching the critical 80-year threshold. The legal work was concluded in November 2010. The landlord’s charges were negotiated to below 650 pounds.
In 2010 we were phoned by Dr Elizabeth Moreau who, having was assigned a lease of a first floor apartment in Old Colwyn in August 2002. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Identical residencies in Old Colwyn with an extended lease were worth £186,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease came to a finish on 7 January 2084. Considering the 58 years left we approximated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 plus expenses.
In 2014 we were e-mailed by Dr Nathaniel White who, having purchased a basement apartment in Old Colwyn in February 2006. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical flats in Old Colwyn with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 collected monthly. The lease finished in 2095. Considering the 69 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.