The nearer a residential lease in Towyn gets to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 100 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Towyn will qualify for this right; nevertheless a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Towyn with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Using our service gives 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Hugo, started to get near to the eighty-year mark with the lease on his first floor flat in Towyn. In buying his home two decades ago, the length of the lease was of minimal significance. Luckily, he realised he needed to take action soon on a lease extension. Hugo was able to extend his lease just under the wire last August. Hugo and the freeholder in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the price would have escalated by a minimum £900.
In 2009 we were approached by Mr Teddy Rose who, having bought a recently refurbished flat in Towyn in February 1998. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Towyn with 100 year plus lease were valued about £265,000. The average ground rent payable was £50 invoiced annually. The lease finished in 2099. Considering the 73 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2014 we were phoned by Mr E Edwards who, having owned a basement flat in Towyn in November 2004. The question was if we could approximate the price could be to prolong the lease by ninety years. Comparative homes in Towyn with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed on 24 July 2079. Taking into account 53 years remaining we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including costs.