There is no doubt about it a leasehold property in Ponders End is a wasting asset as a result of the shortening lease. Where the lease has, over 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Ponders End will qualify for this right; that being said a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Using our service gives you increased control over the value of your Ponders End leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Isaac, came perilously close to the 80-year threshold with the lease on his one bedroom flat in Ponders End. In buying his property 19 years previously, the lease term was of minimal significance. Thankfully, he realised he needed to take steps soon on a lease extension. Isaac arranged for a lease extension at the eleventh hour in August. Isaac and the freeholder via the managing agents ultimately agreed on the final figure of £6,000 . If the lease had dropped to less than eighty years, the sum would have gone up by at least £975.
Last Christmas we were e-mailed by Mr D Mason , who purchased a purpose-built apartment in Ponders End in October 1996. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical homes in Ponders End with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £60 billed quarterly. The lease concluded on 6 May 2081. Considering the 56 years left we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.
An example of a Vesting Order and Purchase of freehold case for a Ponders End residence 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 residue of the current lease was 80.01 years.