Main reasons to commence your Towyn lease extension

Why you should start your Towyn lease extension today:

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

The market value of Towyn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years

Towyn property with a lease extension is almost the same value as a freehold

Leasehold properties in Towyn with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not issue a mortgage with a short lease

Many mortgage lenders will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies between mortgage companies. A buyer will no doubt find it difficult to obtain a mortgage and this could result in your Towyn property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Towyn lease extensions?

Regardless of whether you are a tenant or a freeholder in Towyn,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Towyn valuers.

Towyn Lease Extension Case Studies:

Callum, Towyn, Conwy,

Callum owned a conversion flat in Towyn on the market with a lease of a little over 61 years unexpired. Callum on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Callum to exercise his statutory right. Callum obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.

Towyn case:

In 2011 we were approached by Mr V Morel who, having was assigned a lease of a purpose-built apartment in Towyn in March 2008. We are asked if we could estimate the premium could be to extend the lease by ninety years. Identical flats in Towyn with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expired on 9 January 2098. Considering the 72 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.

Towyn case:

Last Spring we were called by Mr Austin Sharif , who bought a first floor apartment in Towyn in July 1998. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Towyn with a long lease were in the region of £261,600. The mid-range ground rent payable was £60 collected quarterly. The lease expired on 5 July 2078. Considering the 52 years unexpired we calculated the premium to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of expenses.