Stop! Your Lease Extension in Oldham Could Be FREE

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Many leaseholders in Oldham are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Oldham has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to start your Oldham lease extension

Main reasons to commence your Oldham lease extension today:

A Oldham leasehold property depreciates with the years remaining on the lease.

Oldham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Oldham tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Oldham you should investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Oldham with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders will not loan monies with a short lease

Nearly all banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will consider lending on it. Regardless of whether you need a mortgage, you should bear in mind that it is likely that someone wanting to acquire your property in the future might well do, so if they are not able to obtain a mortgage, then the market price of the property will likely suffer. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to accept

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.
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Leeds Building Society 85 years remaining from the start of the mortgage.
Royal Bank of Scotland Mortgage term plus 30 years.
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.

Get in touch with one of our Oldham lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake Oldham 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.

Oldham Lease Extension Case Summaries:

Rachel, Oldham, Greater Manchester,

After unsuccessful discussions with the landlord of her one bedroom flat in Oldham, Rachel initiated the lease extension process just as the lease was coming close to the critical 80-year threshold. The legal work was concluded in May 2014. The landlord’s charges were kept to an absolute minimum.

Oldham case:

Last Winter we were approach by Mr and Mrs. D Lefebvre , who bought a one bedroom flat in Oldham in October 2000. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Similar homes in Oldham with an extended lease were valued about £171,800. The average amount of ground rent was £55 invoiced per annum. The lease lapsed in 2076. Given that there were 50 years left we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.

Oldham case:

In 2010 we were phoned by Mr K Pérez who, having took over the lease of a recently refurbished apartment in Oldham in July 2000. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Identical premises in Oldham with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 invoiced quarterly. The lease terminated on 6 March 2097. Having 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.