It’s a harsh truth that a Oldham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Oldham property prices.Once your lease nears 85ish years, you should start thinking about 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 dips lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Oldham will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Oldham with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Oldham,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Oldham valuers.
After protracted negotiations with the freeholder of her one bedroom flat in Oldham, Jasmine commenced the lease extension process just as her lease was nearing the crucial eighty-year deadline. The lease extension was finalised in September 2008. The freeholder’s charges were restricted to about 550 pounds.
In 2014 we were approached by Mr and Mrs. S Wilson who, having owned a one bedroom apartment in Oldham in October 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar flats in Oldham with a long lease were valued around £196,400. The average ground rent payable was £55 billed monthly. The lease concluded on 13 August 2080. Given that there were 54 years left we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of fees.
Mr V Allen moved into a garden flat in Oldham in February 2006. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical properties in Oldham with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ran out on 18 March 2101. Considering the 75 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.