Ebbw Vale leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Ebbw Vale enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Ebbw Vale you really ought to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Ebbw Vale flat owner with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Ebbw Vale with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Ebbw Vale can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 a wealth of experience procuring 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.
Trailing lengthy discussions with the freeholder of her studio apartment in Ebbw Vale, Alexandra started the lease extension process just as the lease was coming close to the critical 80-year threshold. The transaction completed in August 2013. The landlord’s fees were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. O Davis who, having took over the lease of a purpose-built apartment in Ebbw Vale in June 1997. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Ebbw Vale with a long lease were worth £275,000. The mid-range amount of ground rent was £55 collected per annum. The lease terminated in 2101. Given that there were 76 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Ms Grace Moore purchased a first floor apartment in Ebbw Vale in March 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Ebbw Vale with a long lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected annually. The lease terminated in 2081. Having 56 years remaining we calculated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including costs.