The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Mumbles may extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Mumbles lease extension. Shelving the costs now simply escalates the amount you will ultimately have to pay to extend the lease.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Engaging our service will provide you enhanced control over the value of your Mumbles leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alex was the the leasehold owner of a 2 bedroom flat in Mumbles being marketed with a lease of fraction over 59 years left. Alex informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. M Peterson owned a first floor apartment in Mumbles in January 2005. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative properties in Mumbles with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 invoiced annually. The lease concluded on 4 August 2092. Given that there were 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
Mr and Mrs. G Adams took over the lease of a recently refurbished apartment in Mumbles in October 1997. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Comparative properties in Mumbles with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish on 27 February 2103. Having 77 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.