The re-sale value of a leasehold property in Ebbw Vale depends on how long the lease has remaining. If it is near to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded well before the eighty year mark. Leasehold Reform legislation enables Ebbw Vale qualifying lessees to an additional term of 90 years in addition to the remaining term, at a nominal rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Ebbw Vale with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Ebbw Vale can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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.
Last Summer Austin, came seriously close to the eighty-year mark with the lease on his two bedroom flat in Ebbw Vale. In buying his home two decades ago, the lease term was of minimal concern. Luckily, he became aware that he needed to take steps soon on Extending the lease. Austin arranged for a lease extension just under the wire in March. Austin and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had gone lower than eighty years, the premium would have become more exhorbitant by a minimum £1,075.
In 2010 we were phoned by Dr F Bernard who, having owned a basement apartment in Ebbw Vale in January 2011. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Ebbw Vale with an extended lease were valued about £270,000. The average amount of ground rent was £55 billed per annum. The lease elapsed on 21 November 2100. Given that there were 74 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2011 we were e-mailed by Mr and Mrs. A Sharif who, having owned a newly refurbished apartment in Ebbw Vale in June 1995. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative premises in Ebbw Vale with 100 year plus lease were worth £166,400. The mid-range ground rent payable was £60 billed every twelve months. The lease expired in 2080. Given that there were 54 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including fees.