The only way is down when it comes to Ongar lease terms. Ongar leaseholds that have a remaining term less than than 80 years will drop in value even faster, and the cost of extending your lease will go up.
Leasehold properties in Ongar with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Ongar leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful correspondence with the freeholder of her one bedroom flat in Ongar, Bethan commenced the lease extension process as the 80 year mark was fast nearing. The lease extension completed in July 2012. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were e-mailed by Mr and Mrs. F Edwards who, having moved into a ground floor apartment in Ongar in November 2001. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar flats in Ongar with an extended lease were worth £225,400. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated on 15 March 2089. Considering the 64 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of expenses.
Last Summer we were called by Ms W Sánchez , who moved into a recently refurbished apartment in Ongar in November 1998. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Comparable residencies in Ongar with 100 year plus lease were valued around £270,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease finished on 4 June 2100. Considering the 75 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.