Ebbw Vale leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Ebbw Vale tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Ebbw Vale you should investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Ebbw Vale with more than one hundred years unexpired 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 merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Ebbw Vale,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ebbw Vale valuers.
Half a year ago Harrison, came critically near to the 80-year threshold with the lease on his ground floor flat in Ebbw Vale. Having bought his property twenty years ago, the length of the lease was of no relevance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Harrison was able to extend his lease just in the nick of time in May. Harrison and the landlord in the end settled on a premium of £6,000 . If the lease had slipped lower than 80 years, the amount would have become more costly by at least £1,000.
Mr and Mrs. H García took over the lease of a garden flat in Ebbw Vale in March 2011. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Ebbw Vale with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 billed every twelve months. The lease lapsed in 2082. Given that there were 57 years unexpired we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus expenses.
In 2012 we were approached by Mrs Georgia Martinez who, having bought a first floor flat in Ebbw Vale in October 2006. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable residencies in Ebbw Vale with a long lease were in the region of £245,000. The average amount of ground rent was £50 collected quarterly. The lease concluded on 22 September 2093. Given that there were 68 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.