Ponders End leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Ponders End residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ponders End you really ought to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Ponders End with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Ponders End leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the freeholder of her two bedroom apartment in Ponders End, Jessica started the lease extension process as the 80 year deadline was rapidly approaching. The transaction was finalised in June 2009. The freeholder’s charges were kept to an absolute minimum.
Mr J Clark bought a recently refurbished apartment in Ponders End in April 2006. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable flats in Ponders End with an extended lease were valued about £223,400. The mid-range ground rent payable was £60 collected yearly. The lease came to a finish on 4 January 2085. Taking into account 59 years unexpired we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of expenses.
An example of a Vesting Order and Purchase of freehold matter before the tribunal 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 affected 2 flats. The unexpired residue of the current lease was 80.01 years.