Ongar Lease Extension - Free Consultation

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Top reasons for Ongar lease extension


Top reasons for lease extension now:

A Ongar leasehold property depreciates with the years remaining on the lease.

The value of Ongar leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years

An extended lease is almost the same value as a freehold

Leasehold residencies in Ongar with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders may not issue a mortgage with a short lease

Lenders are tightening their criteria and a meaningful number now want flats to have at least sixty if not seventy years remaining at the expiry of the mortgage. Considering a number of flats in Ongar were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

Lender Requirement
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;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Halifax Minimum 70 years from the date of the mortgage.
Royal Bank of Scotland Mortgage term plus 30 years.
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.

Get in touch with one of our Ongar lease extension solicitors or enfranchisement solicitors

Using our service will provide you better control over the value of your Ongar leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Ongar Lease Extension Example Cases:

Callum, Ongar, Essex

Last October Callum, started to get near to the eighty-year mark with the lease on his leasehold flat in Ongar. In buying his flat two decades ago, the unexpired term was of minimal concern. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Callum extended the lease at the eleventh hour in June. Callum and the landlord who owned the flat above subsequently settled on sum of £6,000 . If he failed to meet the deadline, the sum would have become more costly by at least £975.

Ongar case:

Last year we were e-mailed by Dr Isabel David , who completed a newly refurbished apartment in Ongar in January 2001. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative premises in Ongar with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated on 8 June 2077. Considering the 53 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 plus fees.

Ongar case:

Dr Ellie Mercier was assigned a lease of a one bedroom flat in Ongar in April 2010. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative properties in Ongar with an extended lease were worth £225,400. The mid-range amount of ground rent was £45 collected monthly. The lease ran out on 8 August 2088. Considering the 64 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 not including legals.