On the balance of probabilities if you own a flat in Margam you actually own a long leasehold interest over your property
Leasehold residencies in Margam with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Margam can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Margam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the landlord of her garden flat in Margam, Yasmin initiated the lease extension process just as the lease was approaching the all-important 80-year threshold. The legal work was concluded in November 2010. The landlord’s fees were restricted to below 700 pounds.
Last Christmas we were e-mailed by Mrs Victoria André , who acquired a basement flat in Margam in August 1999. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative flats in Margam with a long lease were in the region of £245,000. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed on 1 May 2094. Considering the 68 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Ms Y Jones purchased a garden apartment in Margam in August 1996. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparative residencies in Margam with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected per annum. The lease terminated in 2105. Having 79 years remaining we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.