Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Tywyn. Clearly, the period of lease left shortens over time. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Tywyn have the legal entitlement to extend the lease for a further 90 years in accordance with statute. You should give careful deliberation before delaying your Tywyn lease extension. Holding off the cost now simply increases the price you will ultimately incur to extend your lease
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 value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Oscar was the the leasehold proprietor of a conversion flat in Tywyn on the market with a lease of fraction over sixty years outstanding. Oscar informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were approached by Mr and Mrs. N Bernard who, having was assigned a lease of a one bedroom apartment in Tywyn in March 2008. We are asked if we could approximate the price would be for a ninety year lease extension. Identical flats in Tywyn with an extended lease were worth £260,200. The mid-range amount of ground rent was £65 billed per annum. The lease expired in 2092. Taking into account 66 years remaining we estimated the premium to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of fees.
Last February we were approach by Mrs Amy Peterson , who acquired a one bedroom apartment in Tywyn in February 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical homes in Tywyn with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed monthly. The lease ended on 26 April 2081. Given that there were 55 years remaining we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.