It’s a harsh certainty that a Oldham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Oldham property prices.Where your lease has approximately 90 years left, you need to start considering 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 under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Oldham will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Irrespective of whether you are a tenant or a landlord in Oldham,the lease extension experts that we work with will always be willing 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.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her studio flat in Oldham, Ellie started the lease extension process just as her lease was nearing the all-important eighty-year mark. The lease extension was concluded in March 2012. The freeholder’s fees were negotiated to about 700 pounds.
Dr Shannon Lee took over the lease of a garden flat in Oldham in April 2010. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical properties in Oldham with a long lease were valued around £285,000. The mid-range ground rent payable was £45 collected annually. The lease expired on 9 May 2098. Taking into account 72 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
Dr Samuel Patel completed a first floor flat in Oldham in June 1997. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative homes in Oldham with a long lease were worth £233,200. The average amount of ground rent was £60 collected annually. The lease finished in 2087. Considering the 61 years left we estimated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 plus expenses.