Main reasons to commence your Towyn lease extension

Why you should commence your Towyn lease extension today:

A Towyn lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Towyn. Inevitably, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Towyn have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Please give careful attention before putting off your Towyn lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease

Towyn property with a lease extension has roughly the same value as a freehold

Leasehold premises in Towyn with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may not grant a mortgage with a short lease

The propensity since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past banks were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Towyn lease extensions?

Regardless of whether you are a tenant or a landlord in Towyn,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Towyn valuers.

Towyn Lease Extension Example Cases:

Alexandra, Towyn, Conwy,

In the wake of 9 months of protracted correspondence with the freeholder of her one bedroom apartment in Towyn, Alexandra initiated the lease extension process just as the lease was nearing the crucial eighty-year threshold. The transaction was concluded in November 2008. The landlord’s fees were kept to an absolute minimum.

Towyn case:

Ms Freya Ricardo moved into a first floor flat in Towyn in April 2012. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparable properties in Towyn with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 collected per annum. The lease expiry date was in 2106. Considering the 80 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.

Towyn case:

Last month we were contacted by Dr Ben Wright , who owned a purpose-built apartment in Towyn in March 2008. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative properties in Towyn with a long lease were valued about £200,800. The mid-range ground rent payable was £65 billed monthly. The lease lapsed on 19 June 2086. Having 60 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of costs.