Main reasons to start your Ebbw Vale lease extension

Why you should start your Ebbw Vale lease extension today:

A Ebbw Vale leasehold property depreciates with the years remaining on the lease.

Ebbw Vale leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits 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 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.

Lenders will not lend with a short lease

Banks and Building Societies have specific criteria when loaning funds charged on leasehold property. Many will simply refrain from lending at all once the remaining lease term goes lower than a specified unexpired lease term. Many Lending institutions will not consider property with a remaining below 75 years suitable security. In addition to this being important when selling, it is also relevant if you are wanting to remortgage your Ebbw Vale home.

Get in touch with one of our Ebbw Vale lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Ebbw Vale,the lease extension experts that we work with will always be willing 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.

Ebbw Vale Lease Extension Example Cases:

Arthur, Ebbw Vale, Abertillery

Two years ago Arthur, came perilously near to the 80-year threshold with the lease on his leasehold flat in Ebbw Vale. Having purchased his home two decades ago, the lease term was of no interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. Arthur was able to extend his lease at the eleventh hour in May. Arthur and the landlord subsequently settled on an amount of £5,000 . If the lease had fallen to less than eighty years, the price would have gone up by a minimum £1,075.

Ebbw Vale case:

Mrs Katherine David was assigned a lease of a first floor flat in Ebbw Vale in August 2008. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Ebbw Vale with an extended lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced annually. The lease ran out in 2095. Having 69 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.

Ebbw Vale case:

In 2014 we were contacted by Dr U Rose who, having completed a ground floor apartment in Ebbw Vale in July 2001. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Ebbw Vale with a long lease were worth £290,000. The average ground rent payable was £55 billed per annum. The lease expired on 13 July 2106. Considering the 80 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.