Unfortunately that a Ponders End residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Ponders End property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining drops below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Ponders End will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not qualify. 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 from beginning to end of the formalities.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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 landlord in Ponders End,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ponders End valuers.
Last Spring Owen, started to get near to the 80-year threshold with the lease on his basement flat in Ponders End. Having purchased his flat two decades ago, the length of the lease was of minimal bearing. As luck would have it, he realised he would imminently be paying an escalated premium for Extending the lease. Owen arranged for a lease extension just under the wire last June. Owen and the landlord eventually agreed on the final figure of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,150.
Dr Amelia Laurent completed a newly refurbished apartment in Ponders End in May 2007. We are asked if we could estimate the price would be to prolong the lease by an additional years. Identical flats in Ponders End with a long lease were worth £300,000. The average ground rent payable was £50 invoiced per annum. The lease lapsed on 28 April 2102. Taking into account 76 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
An example of a Vesting Order and Purchase of freehold case for a Ponders End premises 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 related to 2 flats. The unexpired lease term was 80.01 years.