Why you should start your Tywyn lease extension

Main reasons to commence your Tywyn lease extension today:

A Tywyn leasehold property depreciates with the years remaining on the lease.

The nearer a residential lease in Tywyn gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Tywyn will qualify for this right; however a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Tywyn with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders may decide not to finance a property on a short lease

Lenders are tightening their criteria and many now want flats to have at least sixty if not seventy years left once the mortgage has expired. Considering a number of flats in Tywyn were created in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to obtain a mortgage.

Why use us for your lease extension in Tywyn?

The conveyancers that we work with handle 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.

Tywyn Lease Extension Example Cases:

Bethany, Tywyn, Gwynedd,

Trailing protracted discussions with the landlord of her purpose-built apartment in Tywyn, Bethany commenced the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction was concluded in July 2010. The landlord’s costs were kept to an absolute minimum.

Tywyn case:

In 2010 we were called by Ms Francesca Parker who, having owned a garden apartment in Tywyn in May 2007. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative properties in Tywyn with 100 year plus lease were worth £285,000. The average ground rent payable was £45 invoiced monthly. The lease lapsed in 2097. Given that there were 71 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.

Tywyn case:

In 2012 we were phoned by Mr J Rogers who, having was assigned a lease of a newly refurbished flat in Tywyn in June 1996. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable homes in Tywyn with an extended lease were valued around £225,800. The average amount of ground rent was £60 invoiced annually. The lease ran out in 2086. Having 60 years remaining we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including professional charges.