There is no doubt about it a leasehold flat or house in Towyn is a wasting asset as a result of the shortening lease. Where the lease has, beyond 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Towyn will qualify for this right; that being said a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Towyn can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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.
Archie owned a studio flat in Towyn on the market with a lease of fraction over sixty years outstanding. Archie informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Archie to exercise his statutory right. Archie obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2013 we were phoned by Mr T Lewis who, having purchased a garden flat in Towyn in February 1996. The question was if we could estimate the price could be to extend the lease by an additional years. Comparable homes in Towyn with 100 year plus lease were valued about £275,000. The average ground rent payable was £55 billed every twelve months. The lease ran out in 2102. Taking into account 76 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Mr Callum Davis moved into a purpose-built flat in Towyn in August 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical flats in Towyn with a long lease were in the region of £176,200. The average ground rent payable was £65 billed every twelve months. The lease concluded in 2082. Taking into account 56 years remaining we calculated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of fees.