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 becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Towyn residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Towyn you should see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Towyn leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Towyn,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Towyn valuers.
Last Christmas Finn, came seriously close to the eighty-year threshold with the lease on his one bedroom flat in Towyn. Having purchased his home twenty years ago, the lease term was of little bearing. Fortunately, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Finn was able to extend his lease at the eleventh hour last May. Finn and the freeholder via the management company in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have gone up by a minimum £900.
Dr Rebecca Green moved into a studio apartment in Towyn in November 2006. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparative flats in Towyn with 100 year plus lease were valued about £218,000. The average ground rent payable was £45 collected annually. The lease expired on 4 May 2089. Having 63 years left we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including professional charges.
Last month we were contacted by Dr Eleanor Roux , who acquired a purpose-built apartment in Towyn in April 1995. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Towyn with a long lease were valued around £265,000. The average amount of ground rent was £50 billed every twelve months. The lease ran out on 14 January 2099. Taking into account 73 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.