Top reasons for Ongar lease extension

Why you should start your Ongar lease extension today:

Increase your lease and increase your Ongar property value

Ongar leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Ongar tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Ongar you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

Ongar property with a lease extension is almost the same value as a freehold

Leasehold properties in Ongar with over 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Lending institutions will not lend on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to get nervous at around 75 years. This will cause difficulties when you wish to dispose of or remortgage your flat as it will be effectively unmortgageable. Even though you might have no imminent intention to sell but when you do your purchaser will have to wait 2 years before they can exercise the right to a an extension to the lease.

Get in touch with one of our Ongar lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with procure 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 conveyancer we work with provide it.

Ongar Lease Extension Case Summaries:

Holly, Ongar, Essex,

In the wake of eight months of lengthy discussions with the freeholder of her purpose-built flat in Ongar, Holly initiated the lease extension process just as the lease was coming close to the critical eighty-year mark. The legal work was finalised in June 2011. The landlord’s fees were kept to an absolute minimum.

Ongar case:

Last year we were e-mailed by Mr and Mrs. M François , who was assigned a lease of a first floor flat in Ongar in September 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Ongar with 100 year plus lease were valued around £265,000. The mid-range ground rent payable was £50 collected yearly. The lease finished in 2099. Given that there were 73 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.

Ongar case:

In 2013 we were e-mailed by Mr and Mrs. C Lee who, having moved into a studio flat in Ongar in April 1995. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Identical flats in Ongar with an extended lease were valued around £264,000. The average ground rent payable was £60 invoiced per annum. The lease finished in 2079. Considering the 53 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of costs.