The re-sale value of a leasehold property in Ponders End depends on how long the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that formalities can be addressed in advance of the eighty year cut off point. Current legislation enables Ponders End qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 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 ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 secure professional help 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.
In recent months Dexter, came seriously near to the 80-year mark with the lease on his garden flat in Ponders End. Having purchased his flat 19 years ago, the lease term was of little interest. Fortunately, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Dexter arranged for a lease extension at the eleventh hour in September. Dexter and the landlord who owned the flat above subsequently settled on sum of £5,000 . If he not met the deadline, the premium would have increased by a minimum £950.
Dr Abbie Michel owned a one bedroom apartment in Ponders End in March 2000. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Ponders End with 100 year plus lease were worth £179,200. The average amount of ground rent was £55 billed yearly. The lease ran out on 28 July 2077. Having 51 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including expenses.
An example of a Vesting Order and Purchase of freehold decision 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 was in relation to 2 flats. The number of years remaining on the existing lease(s) was 80.01 years.