Ongar leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher amount will be payable. Leasehold owners in Ongar will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Ongar with in excess of 100 years unexpired on the lease are often 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 freehold unless savings on ground rent and service charges merit it.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Ongar can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Ongar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
David was the the leasehold owner of a conversion flat in Ongar being marketed with a lease of just over sixty years left. David on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were David to invoke his statutory right. David procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Dr Jasper Bell bought a first floor flat in Ongar in May 2010. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical properties in Ongar with an extended lease were worth £218,000. The mid-range ground rent payable was £45 collected quarterly. The lease finished on 4 November 2089. Considering the 63 years remaining we approximated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 not including expenses.
Last Christmas we were contacted by Dr E Hernández , who acquired a purpose-built apartment in Ongar in October 2010. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar flats in Ongar with 100 year plus lease were worth £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease concluded on 19 March 2100. Taking into account 74 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.