There is no doubt about it a leasehold property in Mumbles is a wasting asset as a result of the shortening lease. If the lease has, beyond 125 years to run then this decrease may be fractional however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Mumbles will qualify for this right; nevertheless a lawyer will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Mumbles with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Chelsea Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Mumbles 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 conveyancing solicitor we work with provide it.
After unsuccessful negotiations with the landlord of her studio apartment in Mumbles, Natasha commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension was concluded in October 2013. The freeholder’s charges were negotiated to about 500 GBP.
Last year we were called by Dr Yasmin Mitchell , who moved into a one bedroom apartment in Mumbles in October 2009. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar flats in Mumbles with an extended lease were worth £270,000. The average ground rent payable was £55 billed annually. The lease lapsed on 15 June 2100. Taking into account 75 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
Dr Hugo Flores was assigned a lease of a one bedroom flat in Mumbles in February 1996. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Mumbles with a long lease were in the region of £168,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease came to a finish on 23 March 2080. Having 55 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.