For anyone whose Ebbw Vale property is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ebbw Vale can be a difficult process. We recommend you procure 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 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 unsuccessful correspondence with the freeholder of her ground floor flat in Ebbw Vale, Grace initiated the lease extension process as the 80 year deadline was fast advancing. The transaction was finalised in January 2010. The freeholder’s costs were negotiated to slightly above 700 GBP.
Dr L Thomas bought a studio apartment in Ebbw Vale in September 2000. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable premises in Ebbw Vale with a long lease were worth £166,400. The mid-range ground rent payable was £60 billed quarterly. The lease ended on 14 October 2079. Taking into account 54 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.
Mr W Wilson acquired a first floor flat in Ebbw Vale in February 2007. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Similar residencies in Ebbw Vale with a long lease were valued around £227,800. The average amount of ground rent was £45 collected quarterly. The lease concluded on 12 October 2090. Taking into account 65 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.