Towyn leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Towyn tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Towyn you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Towyn with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Towyn leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Riley owned a high value apartment in Towyn being sold with a lease of a few days over 72 years remaining. Riley on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Riley to invoke his statutory right. Riley procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. H Laurent acquired a first floor apartment in Towyn in April 2000. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparable homes in Towyn with a long lease were in the region of £237,600. The average ground rent payable was £45 invoiced monthly. The lease expired in 2093. Considering the 67 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus professional charges.
In 2013 we were approached by Mr and Mrs. O Bernard who, having bought a first floor flat in Towyn in June 2000. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative homes in Towyn with a long lease were valued about £280,000. The average amount of ground rent was £55 collected per annum. The lease terminated on 17 November 2103. Having 77 years left we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.