It’s an underpublicised truth that a Ongar residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Ongar property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. The majority of flat owners in Ongar will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Ongar with in excess of 100 years outstanding on the lease are often 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 buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Ongar leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Dexter, came dangerously close to the 80-year threshold with the lease on his first floor apartment in Ongar. Having purchased his property two decades ago, the length of the lease was of minimal relevance. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. Dexter arranged for a lease extension at the eleventh hour in January. Dexter and the freeholder via the managing agents ultimately settled on sum of £5,500 . If the lease had dropped to less than eighty years, the premium would have increased by at least £1,025.
In 2010 we were called by Mr and Mrs. D Lefèvre who, having was assigned a lease of a studio apartment in Ongar in April 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Ongar with 100 year plus lease were valued around £265,000. The average ground rent payable was £55 billed per annum. The lease elapsed on 14 April 2098. Having 74 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2013 we were phoned by Mrs Daisy Cook who, having acquired a ground floor apartment in Ongar in May 2004. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Identical premises in Ongar with a long lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease lapsed on 25 October 2078. Having 54 years outstanding we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including legals.