As the length of the unexpired term of a Towyn domestic lease decreases so does its value and therefore the value of your property. If the lease has, beyond one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Towyn will meet the qualifying criteria; nevertheless a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Towyn leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jack, started to get near to the 80-year threshold with the lease on his first floor apartment in Towyn. Having purchased his property 18 years ago, the lease term was of no significance. by good luck, he noticed he needed to take steps soon on Extending the lease. Jack was able to extend his lease just in the nick of time in June. Jack and the landlord who owned the flat above ultimately settled on sum of £6,000 . If he not met the deadline, the figure would have gone up by at least £950.
In 2014 we were approached by Dr P Pérez who, having moved into a newly refurbished flat in Towyn in April 2002. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Towyn with a long lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed in 2079. Taking into account 54 years remaining we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of legals.
In 2013 we were approached by Mr and Mrs. U Wood who, having owned a studio flat in Towyn in October 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Towyn with a long lease were worth £227,800. The average amount of ground rent was £45 invoiced yearly. The lease concluded on 17 May 2090. Having 65 years left we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.