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 gets more expensive. The majority of owners of residential leasehold property in Towyn enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Towyn you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you increased control over the value of your Towyn leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Kian, started to get near to the 80-year mark with the lease on his one bedroom flat in Towyn. In buying his property two decades ago, the lease term was of no relevance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Kian was able to extend his lease just in the nick of time last June. Kian and the freeholder ultimately agreed on sum of £6,000 . If the lease had dropped below 80 years, the price would have gone up by a minimum £1,125.
Last Winter we were phoned by Mr and Mrs. S Lewis , who acquired a first floor flat in Towyn in March 1996. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Towyn with a long lease were valued around £250,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease finished in 2094. Given that there were 69 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Christmas we were phoned by Mr Y Allen , who owned a purpose-built flat in Towyn in June 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable flats in Towyn with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced monthly. The lease ended in 2105. Considering the 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.