Unfortunately that a Ebbw Vale residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Ebbw Vale property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Ebbw Vale will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly 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 in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Ebbw Vale,the lease extension experts that we work with will always be happy 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.
Elijah owned a 2 bedroom apartment in Ebbw Vale on the market with a lease of a few days over 72 years left. Elijah informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
In 2009 we were phoned by Mr Sam Hill who, having was assigned a lease of a one bedroom apartment in Ebbw Vale in June 1997. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Similar properties in Ebbw Vale with 100 year plus lease were worth £173,800. The mid-range ground rent payable was £60 invoiced yearly. The lease concluded in 2081. Taking into account 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.
Mr and Mrs. M López moved into a one bedroom apartment in Ebbw Vale in May 2011. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Ebbw Vale with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected annually. The lease came to a finish in 2092. Having 66 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.