Towyn leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Towyn residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Towyn you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Towyn leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Towyn leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the landlord of her leasehold apartment in Towyn, Danielle initiated the lease extension process just as her lease was approaching the critical 80-year threshold. The transaction was concluded in August 2007. The freeholder’s costs were negotiated to about 650 pounds.
Mr I Sharif took over the lease of a one bedroom flat in Towyn in January 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Towyn with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced per annum. The lease expired in 2075. Considering the 50 years unexpired we approximated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 plus legals.
In 2010 we were called by Dr Y Walker who, having purchased a ground floor flat in Towyn in June 2011. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar properties in Towyn with an extended lease were in the region of £203,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended in 2086. Considering the 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus expenses.