Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Ponders End. Clearly, the term of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Ponders End have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. You should give careful consideration before putting off your Ponders End lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Ponders End with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ponders End can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 Ponders End lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the landlord of her studio apartment in Ponders End, Ellen commenced the lease extension process just as her lease was nearing the crucial eighty-year threshold. The legal work was concluded in July 2015. The freeholder’s costs were negotiated to about 600 pounds.
Last Spring we were called by Ms Emma Hernández , who moved into a ground floor flat in Ponders End in August 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable premises in Ponders End with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded in 2100. Having 76 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
An example of a Vesting Order and Purchase of freehold case for a Ponders End flat is Ground Floor Flat 4A Baronet Road in February 2010. Following a vesting order by Edmonton County Court on 23rd December 2008 (case number 8ED064) the Tribunal decided that the price that the Applicant for the freehold interest should pay is £8,689.00 This case was in relation to 2 flats. The number of years remaining on the existing lease(s) was 80.01 years.