Ongar leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease drops below 80 years - otherwise a higher amount will be due. Leasehold owners in Ongar will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Ongar with in excess of 100 years remaining 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Ongar,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ongar valuers.
Finley was the the leasehold owner of a conversion flat in Ongar being sold with a lease of a little over sixty years unexpired. Finley on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to exercise his statutory right. Finley procured expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Winter we were called by Dr Robyn Sharif , who was assigned a lease of a studio apartment in Ongar in January 2007. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparable homes in Ongar with an extended lease were valued around £255,000. The average amount of ground rent was £50 billed monthly. The lease came to a finish in 2096. Taking into account 71 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
Mrs Ellen Turner purchased a one bedroom apartment in Ongar in June 2002. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar premises in Ongar with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 billed yearly. The lease terminated on 5 March 2076. Taking into account 51 years outstanding we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus expenses.