The market value of a leasehold property in Ongar is impacted by how long the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that formalities can be concluded in advance of the 80 year threshold. Statute entitles Ongar qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| TSB |
Irrespective of whether you are a tenant or a freeholder in Ongar,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ongar valuers.
In 2014 Milo, started to get close to the 80-year mark with the lease on his first floor flat in Ongar. Having purchased his property twenty years previously, the unexpired term was of minimal significance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Milo was able to extend his lease just under the wire in May. Milo and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If the lease had slipped lower than 80 years, the sum would have escalated by a minimum £950.
In 2009 we were phoned by Dr J Roux who, having acquired a ground floor flat in Ongar in October 2000. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar premises in Ongar with a long lease were worth £203,200. The mid-range amount of ground rent was £65 collected per annum. The lease ended in 2087. Considering the 61 years left we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including fees.
In 2013 we were called by Mr and Mrs. J Cook who, having was assigned a lease of a studio flat in Ongar in August 1997. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical residencies in Ongar with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease concluded in 2098. Having 72 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.