Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ebbw Vale. Clearly, the length of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Ebbw Vale have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. You should give careful consideration before delaying your Ebbw Vale lease extension. Putting off the cost now only increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Ebbw Vale with more than one hundred 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| 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 Ebbw Vale can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Ebbw Vale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lewis owned a high value flat in Ebbw Vale on the market with a lease of a little over 61 years unexpired. Lewis informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Dr Cameron Kelly owned a purpose-built flat in Ebbw Vale in May 2010. The question was if we could estimate the premium could be for a 90 year lease extension. Comparative premises in Ebbw Vale with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish on 27 July 2096. Given that there were 70 years unexpired we approximated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 not including costs.
In 2014 we were approached by Mr and Mrs. L Rogers who, having bought a basement flat in Ebbw Vale in April 2007. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Ebbw Vale with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 billed every twelve months. The lease ended on 10 July 2076. Considering the 50 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 plus expenses.