On the balance of probabilities if you own a flat in Mumbles you actually own a long leasehold interest over your property
Leasehold properties in Mumbles with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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 |
Using our service gives you enhanced control over the value of your Mumbles leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Aarav, came very near to the eighty-year mark with the lease on his garden apartment in Mumbles. In buying his property two decades ago, the lease term was of no significance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Aarav arranged for a lease extension just in the nick of time last July. Aarav and the freeholder eventually settled on a premium of £6,000 . If he had missed the deadline, the amount would have escalated by a minimum £850.
Mr and Mrs. J Rose acquired a ground floor flat in Mumbles in October 2007. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative premises in Mumbles with an extended lease were valued around £176,200. The mid-range amount of ground rent was £65 collected quarterly. The lease terminated on 16 September 2081. Given that there were 56 years remaining we calculated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of fees.
Ms D Fournier took over the lease of a garden flat in Mumbles in November 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Mumbles with 100 year plus lease were valued around £237,600. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish in 2092. Taking into account 67 years outstanding we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus expenses.