The only way is down when it comes to Tywyn lease terms. Tywyn properties that have a lease term fewer than 80 years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Tywyn,the lease extension solicitors 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 Tywyn valuers.
18 months ago Max, started to get near to the 80-year mark with the lease on his two bedroom apartment in Tywyn. In buying his home twenty years previously, the length of the lease was of minimal importance. Luckily, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Max was able to extend his lease just ahead of time in June. Max and the freeholder in the end settled on the final figure of £5,000 . If the lease had slipped to less than eighty years, the amount would have increased by a minimum £1,000.
In 2012 we were phoned by Mrs Katie Petit who, having purchased a recently refurbished flat in Tywyn in November 1997. The question was if we could approximate the premium would be for a 90 year lease extension. Identical homes in Tywyn with a long lease were valued about £233,200. The average amount of ground rent was £60 invoiced every twelve months. The lease termination date was on 27 March 2086. Given that there were 61 years outstanding we estimated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus professional charges.
Last year we were phoned by Mr E Robinson , who bought a one bedroom apartment in Tywyn in February 2008. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable homes in Tywyn with 100 year plus lease were valued around £166,800. The average ground rent payable was £50 billed per annum. The lease lapsed on 3 November 2075. Taking into account 50 years outstanding we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus professional charges.