Main reasons to commence your Ebbw Vale lease extension

Why you should commence your Ebbw Vale lease extension today:

Increase your lease and increase your Ebbw Vale property value

Ebbw Vale residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.

Ebbw Vale property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies will not lend with a short lease

The trend since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Ebbw Vale?

Irrespective of whether you are a tenant or a freeholder in Ebbw Vale,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ebbw Vale valuers.

Ebbw Vale Lease Extension Example Cases:

Naomi, Ebbw Vale, Abertillery,

Subsequent to unsuccessful correspondence with the landlord of her garden flat in Ebbw Vale, Naomi initiated the lease extension process as the 80 year mark was rapidly coming. The transaction was concluded in February 2008. The landlord’s fees were negotiated to about 550 GBP.

Ebbw Vale case:

Dr L Davis bought a basement apartment in Ebbw Vale in June 2006. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable properties in Ebbw Vale with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 invoiced per annum. The lease concluded on 18 August 2079. Considering the 53 years as a residual term we calculated the premium to the landlord to extend the lease to be between £37,100 and £42,800 plus costs.

Ebbw Vale case:

In 2010 we were contacted by Dr O Murphy who, having acquired a one bedroom apartment in Ebbw Vale in May 1997. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparable flats in Ebbw Vale with an extended lease were valued around £225,400. The average amount of ground rent was £45 invoiced every twelve months. The lease end date was on 28 July 2090. Taking into account 64 years outstanding we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of expenses.