Ongar leases on domestic properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Leasehold owners in Ongar will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain situations you may not qualify. There are also strict deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Ongar with more than one hundred years unexpired 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate 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; |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Ongar can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
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 dealing with Ongar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Gabriel was the the leasehold proprietor of a high value apartment in Ongar being marketed with a lease of just over fifty eight years left. Gabriel on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Dr A James acquired a studio apartment in Ongar in September 2004. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical premises in Ongar with an extended lease were worth £264,000. The average ground rent payable was £60 billed every twelve months. The lease lapsed in 2078. Having 53 years unexpired we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 not including legals.
Dr Lily Clarke acquired a one bedroom apartment in Ongar in January 2007. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar residencies in Ongar with 100 year plus lease were worth £225,400. The average ground rent payable was £45 billed yearly. The lease elapsed in 2089. Given that there were 64 years left we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 not including costs.