Top reasons for Ongar lease extension

Why you should commence your Ongar lease extension today:

A Ongar leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Ongar depends on how long the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that formalities can be addressed well before the 80 year threshold. Leasehold Reform legislation enables Ongar qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold properties in Ongar with more than one hundred years left 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 maintenance charges warrant it.

Mortgage lenders will not lend with 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 jittery at around 75 years. This may be problematic as and when you need to market or refinance your flat as it will be practically unmortgageable. Even though you may have no immediate intention to sell but when you do your purchaser must hold off for 2 years before they can exercise the right to a an extension to the lease.

What makes us experts in Ongar lease extensions?

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 conveyancing solicitor we work with provide it.

Ongar Lease Extension Example Cases:

Jordan, Ongar, Essex,

Trailing protracted correspondence with the landlord of her ground floor flat in Ongar, Jordan started the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction was concluded in March 2010. The landlord’s fees were kept to an absolute minimum.

Ongar case:

Ms V Lambert owned a one bedroom flat in Ongar in January 1998. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparable properties in Ongar with a long lease were worth £246,800. The mid-range ground rent payable was £60 invoiced annually. The lease finished in 2076. Considering the 50 years left we estimated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 plus professional charges.

Ongar case:

Dr K Morel moved into a studio apartment in Ongar in June 2005. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Comparable premises in Ongar with 100 year plus lease were in the region of £203,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out on 24 July 2087. Considering the 61 years left we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.