On the balance of probabilities if you own a flat in Towyn you actually own a long leasehold interest over your property
Leasehold premises in Towyn with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The lawyers that we work with undertake Towyn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Tommy, came critically near to the eighty-year threshold with the lease on his studio apartment in Towyn. Having purchased his home two decades ago, the lease term was of minimal concern. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Tommy arranged for a lease extension at the eleventh hour last August. Tommy and the freeholder in the end settled on a premium of £6,000 . If the lease had dropped to less than eighty years, the sum would have increased by at least £900.
Dr J Gray owned a one bedroom flat in Towyn in November 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Towyn with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 billed yearly. The lease elapsed on 23 April 2082. Having 57 years unexpired we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.
In 2013 we were phoned by Mr and Mrs. E Clarke who, having moved into a newly refurbished apartment in Towyn in July 1997. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical flats in Towyn with a long lease were in the region of £245,000. The mid-range amount of ground rent was £45 billed per annum. The lease expiry date was in 2093. Taking into account 68 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.