Chances are that if you own a flat in Ongar you actually own a long leasehold interest over your property
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The conveyancers that we work with handle 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.
Subsequent to protracted correspondence with the freeholder of her purpose-built apartment in Ongar, Jessica initiated the lease extension process just as the lease was coming close to the crucial 80-year mark. The lease extension completed in April 2007. The freeholder’s costs were negotiated to below 600 pounds.
Last Winter we were approach by Mr and Mrs. C Parker , who was assigned a lease of a first floor apartment in Ongar in June 2009. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Ongar with an extended lease were in the region of £264,000. The mid-range ground rent payable was £60 billed monthly. The lease ran out on 24 April 2079. Taking into account 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including expenses.
In 2010 we were contacted by Mrs U Clarke who, having acquired a studio apartment in Ongar in August 2004. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Ongar with 100 year plus lease were in the region of £220,400. The mid-range ground rent payable was £45 invoiced per annum. The lease concluded on 11 September 2090. Having 64 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 not including costs.