It’s a harsh truth that a Oldham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Oldham property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Oldham will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Oldham can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Oldham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason owned a 2 bedroom apartment in Oldham on the market with a lease of a few days over 72 years remaining. Mason on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Mason to exercise his statutory right. Mason obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last June we were e-mailed by Mr and Mrs. O Díaz , who purchased a first floor apartment in Oldham in January 2006. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable flats in Oldham with a long lease were worth £171,800. The mid-range ground rent payable was £55 billed per annum. The lease lapsed on 6 September 2074. Considering the 50 years unexpired we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus fees.
In 2009 we were contacted by Mr A François who, having acquired a basement apartment in Oldham in January 1997. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable residencies in Oldham with a long lease were worth £280,000. The average ground rent payable was £45 invoiced yearly. The lease ran out in 2094. Having 70 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.