Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Tywyn. Inevitably, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Tywyn have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. You should give due consideration before putting off your Tywyn lease extension. Holding off the cost now only increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Halifax | |
| Santander | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with undertake Tywyn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jason was the the leasehold proprietor of a 2 bedroom apartment in Tywyn on the market with a lease of a few days over 59 years outstanding. Jason on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to exercise his statutory right. Jason obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Mrs Eleanor Brooks who, having was assigned a lease of a ground floor apartment in Tywyn in October 2005. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Similar residencies in Tywyn with a long lease were valued about £218,400. The average amount of ground rent was £60 collected per annum. The lease expired on 18 June 2085. Taking into account 59 years remaining we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus legals.
Last Christmas we were contacted by Mr and Mrs. D Adams , who bought a first floor apartment in Tywyn in January 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Tywyn with an extended lease were valued about £205,000. The average amount of ground rent was £50 collected per annum. The lease came to a finish on 2 September 2105. Given that there were 79 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.