The market value of Tywyn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than 80 years
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Tywyn,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 in-depth market knowledge and the close ties they enjoy with Tywyn valuers.
Max owned a 2 bedroom apartment in Tywyn on the market with a lease of a little over fifty eight years unexpired. Max informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last month we were e-mailed by Mr V Martinez , who acquired a garden apartment in Tywyn in October 2009. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative properties in Tywyn with an extended lease were worth £300,000. The average amount of ground rent was £50 collected yearly. The lease expired in 2101. Having 76 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Last month we were approach by Mrs Harriet Baker , who was assigned a lease of a one bedroom flat in Tywyn in June 2005. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable premises in Tywyn with an extended lease were valued around £252,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease ended on 8 August 2090. Considering the 65 years outstanding we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 plus costs.