Towyn leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Towyn tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Towyn you really ought to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Towyn flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Santander |
Lease extensions in Towyn can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 dealing with Towyn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Noah owned a conversion apartment in Towyn being sold with a lease of a little over 59 years left. Noah on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Noah to invoke his statutory right. Noah obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.
In 2010 we were called by Mrs Kirsty Kelly who, having owned a recently refurbished apartment in Towyn in April 1995. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable homes in Towyn with a long lease were in the region of £208,200. The average ground rent payable was £65 billed every twelve months. The lease concluded in 2087. Considering the 61 years remaining we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including costs.
In 2014 we were phoned by Dr John Wood who, having moved into a basement apartment in Towyn in July 2006. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Towyn with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 billed per annum. The lease elapsed in 2098. Taking into account 72 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.