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 the lease gets more expensive. Most owners of residential leasehold property in Towyn enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Towyn you must see if your lease has between seventy and ninety years left. There are compelling reasons why a Towyn leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Towyn can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Towyn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar was the the leasehold owner of a high value apartment in Towyn being sold with a lease of a few days over fifty eight years outstanding. Omar informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Omar to invoke his statutory right. Omar procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2014 we were approached by Dr Teddy Lefebvre who, having moved into a purpose-built apartment in Towyn in August 2003. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Comparable homes in Towyn with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 collected monthly. The lease lapsed in 2086. Given that there were 60 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including fees.
Last July we were called by Dr Naomi Nelson , who acquired a one bedroom flat in Towyn in October 2000. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Comparable flats in Towyn with a long lease were valued around £260,000. The average ground rent payable was £50 invoiced yearly. The lease finished in 2097. Considering the 71 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.