Chances are that if you own a flat in Ebbw Vale you actually own a long leasehold interest over your property
Leasehold residencies in Ebbw Vale with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 get guidance from a conveyancer and valuer with experience in this area.
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 a wealth of experience 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.
Arthur was the the leasehold owner of a conversion apartment in Ebbw Vale being marketed with a lease of a few days over 59 years remaining. Arthur informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Mr and Mrs. I Richardson completed a ground floor apartment in Ebbw Vale in May 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparable premises in Ebbw Vale with an extended lease were worth £242,600. The average ground rent payable was £45 collected monthly. The lease ran out in 2092. Given that there were 67 years left we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including fees.
In 2013 we were e-mailed by Mrs Hannah Kelly who, having purchased a basement flat in Ebbw Vale in March 2009. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical premises in Ebbw Vale with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish on 26 July 2103. Given that there were 78 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.