Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Ongar. Clearly, the period of lease remaining reduces over time. This is often overlooked and only becomes a problem when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Ongar have the legal entitlement to extend the lease for a further 90 years under statute. Please give due attention before putting off your Ongar lease extension. Putting off that expense now only increases the price you will eventually have to pay to extend your lease
Leasehold premises in Ongar with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Halifax | |
| The Mortgage Works | |
| Virgin |
The conveyancers that we work with handle Ongar lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Arthur was the the leasehold proprietor of a high value flat in Ongar on the market with a lease of just over 59 years unexpired. Arthur on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of 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 Arthur to exercise his statutory right. Arthur obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
In 2010 we were contacted by Dr Omar Collins who, having took over the lease of a one bedroom apartment in Ongar in February 2006. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparative properties in Ongar with an extended lease were worth £275,000. The average amount of ground rent was £55 collected monthly. The lease expired in 2103. Having 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.
In 2014 we were called by Mrs Rebecca Martínez who, having was assigned a lease of a one bedroom apartment in Ongar in January 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Ongar with an extended lease were worth £183,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2083. Taking into account 57 years remaining we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus fees.