For anyone whose Oldham property is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
Leasehold residencies in Oldham with over 100 years left 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Santander |
Engaging our service gives you better control over the value of your Oldham leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a high value flat in Oldham being marketed with a lease of fraction over 72 years left. Jackson informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jackson to exercise his statutory right. Jackson procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
In 2012 we were e-mailed by Dr K Miller who, having owned a basement flat in Oldham in February 2007. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Identical residencies in Oldham with 100 year plus lease were valued about £181,600. The mid-range ground rent payable was £55 invoiced every twelve months. The lease concluded in 2078. Taking into account 52 years remaining we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.
Last Christmas we were approach by Mrs M Howard , who owned a studio apartment in Oldham in November 2007. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Similar properties in Oldham with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 invoiced per annum. The lease terminated in 2098. Taking into account 72 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.