Ebbw Vale leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ebbw Vale residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ebbw Vale you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies 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 value the same as a freehold interest in your property. In such situations 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Ebbw Vale,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ebbw Vale valuers.
Two years ago William, started to get near to the eighty-year mark with the lease on his basement apartment in Ebbw Vale. Having bought his property twenty years ago, the lease term was of no concern. by good luck, he realised he needed to take action soon on a lease extension. William was able to extend his lease at the eleventh hour in May. William and the freeholder via the managing agents in the end settled on sum of £5,500 . If he failed to meet the deadline, the amount would have gone up by a minimum £1,150.
In 2010 we were approached by Mr and Mrs. G Sánchez who, having completed a basement apartment in Ebbw Vale in July 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative homes in Ebbw Vale with an extended lease were valued about £210,600. The average amount of ground rent was £45 invoiced monthly. The lease ran out on 18 August 2088. Having 62 years remaining we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.
Dr Aimee Davis purchased a one bedroom apartment in Ebbw Vale in July 1997. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical homes in Ebbw Vale with a long lease were valued around £265,000. The average amount of ground rent was £50 billed yearly. The lease concluded in 2099. Considering the 73 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.