Chances are that where you own a flat in Ponders End you actually own a long leasehold interest over your property
Leasehold residencies in Ponders End with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Ponders End lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Autumn David, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Ponders End. In buying his home twenty years previously, the length of the lease was of no bearing. Luckily, he recognised he would imminently be paying an inflated amount for a lease extension. David was able to extend his lease just ahead of time in January. David and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he not met the deadline, the price would have gone up by at least £1,100.
Mr and Mrs. E Rogers moved into a basement apartment in Ponders End in April 2005. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Ponders End with an extended lease were worth £196,400. The average amount of ground rent was £55 billed per annum. The lease terminated on 1 January 2079. Having 54 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £35,200 and £40,600 plus professional charges.
An example of a Vesting Order and Purchase of freehold matter before the tribunal 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 was in relation to 2 flats. The remaining number of years on the lease was 80.01 years.