Unfortunately that a Towyn residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Towyn property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Towyn will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Towyn with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Towyn,the lease extension experts 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.
Joshua owned a 2 bedroom flat in Towyn on the market with a lease of fraction over 59 years remaining. Joshua on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Spring we were phoned by Dr Evan Gunderson , who bought a recently refurbished flat in Towyn in April 2009. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparative properties in Towyn with a long lease were worth £166,400. The mid-range ground rent payable was £60 collected annually. The lease expired in 2080. Taking into account 54 years left we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of expenses.
Mr and Mrs. W Stewart completed a studio apartment in Towyn in February 2002. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative premises in Towyn with 100 year plus lease were valued about £232,800. The average ground rent payable was £45 invoiced annually. The lease lapsed on 19 March 2091. Given that there were 65 years unexpired we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.