Ongar leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Ongar will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Ongar with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Ongar,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ongar valuers.
In the wake of 9 months of protracted discussions with the landlord of her basement apartment in Ongar, Millie started the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension was concluded in March 2010. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. R Cox took over the lease of a ground floor apartment in Ongar in September 2006. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar properties in Ongar with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 billed yearly. The lease came to a finish in 2077. Given that there were 51 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 plus costs.
Mr and Mrs. W Davies acquired a recently refurbished flat in Ongar in August 2012. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Ongar with 100 year plus lease were worth £210,600. The average ground rent payable was £45 billed every twelve months. The lease concluded on 15 March 2088. Taking into account 62 years unexpired we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus costs.