Mumbles leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Mumbles enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Mumbles you should check if your lease has between 70 and ninety years remaining. There are good reasons why a Mumbles flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to 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. |
| 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. |
| 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. |
| 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. |
Lease extensions in Mumbles can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 a wealth of experience dealing with Mumbles lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her first floor flat in Mumbles, Rosie commenced the lease extension process as the 80 year mark was fast nearing. The lease extension was finalised in January 2010. The freeholder’s charges were negotiated to below 500 pounds.
Mr and Mrs. O Mercier purchased a studio flat in Mumbles in April 2002. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Mumbles with a long lease were valued around £280,000. The mid-range amount of ground rent was £55 billed annually. The lease ran out in 2104. Given that there were 78 years left we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.
Mr and Mrs. E Walker owned a recently refurbished flat in Mumbles in October 1995. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar residencies in Mumbles with an extended lease were worth £186,000. The average amount of ground rent was £65 collected annually. The lease came to a finish on 3 June 2084. Having 58 years left we approximated the premium to the landlord for the lease extension to be between £24,700 and £28,600 not including costs.