The market value of Towyn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Towyn,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Towyn valuers.
Off the back of unsuccessful negotiations with the landlord of her ground floor apartment in Towyn, Rebecca commenced the lease extension process just as the lease was nearing the all-important eighty-year deadline. The transaction completed in March 2013. The landlord’s costs were kept to an absolute minimum.
Last October we were called by Mrs Mia Flores , who was assigned a lease of a one bedroom flat in Towyn in June 1996. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative premises in Towyn with a long lease were valued around £220,400. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed in 2089. Taking into account 64 years outstanding we approximated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 not including expenses.
Dr Naomi Richardson bought a basement flat in Towyn in March 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Similar flats in Towyn with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 collected yearly. The lease lapsed on 19 May 2100. Taking into account 75 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.