Chances are that where you own a flat in Towyn you actually own a long leasehold interest over your property
Leasehold residencies in Towyn with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 landlord 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 in-depth market knowledge and the close ties they enjoy with Towyn valuers.
Trailing unsuccessful negotiations with the landlord of her basement flat in Towyn, Bethany commenced the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension was concluded in April 2008. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were approached by Dr Jasper Davis who, having moved into a one bedroom flat in Towyn in July 2010. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable residencies in Towyn with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease expired in 2094. Having 68 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Last Winter we were e-mailed by Ms M Lewis , who purchased a newly refurbished flat in Towyn in June 2010. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical homes in Towyn with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease ran out in 2105. Given that there were 79 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.