The re-sale value of a leasehold property in Ponders End depends on how long the lease has left to run. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years to run so that formalities can be addressed ahead of the eighty year threshold. Statute entitles Ponders End qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Ponders End can be a difficult process. We recommend you procure 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 in-depth market knowledge dealing with 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 lengthy discussions with the landlord of her leasehold apartment in Ponders End, Natalie commenced the lease extension process as the 80 year mark was rapidly coming. The transaction was finalised in September 2007. The landlord’s costs were kept to an absolute minimum.
Last month we were called by Dr Harvey Gunderson , who acquired a one bedroom flat in Ponders End in June 2000. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparative homes in Ponders End with a long lease were worth £290,000. The average ground rent payable was £45 collected annually. The lease lapsed on 26 October 2098. Given that there were 73 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
An example of a Vesting Order and Purchase of freehold case for a Ponders End property 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 affected 2 flats. The unexpired lease term was 80.01 years.