When it comes to domestic leasehold premises in Oldham, you are actually buying a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Oldham with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has under eighty years left, under the relevant legislation the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Oldham can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in this area.
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 in-depth market knowledge 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.
During the course of the last few months Muhammad, started to get near to the 80-year threshold with the lease on his studio flat in Oldham. Having bought his property 19 years previously, the unexpired term was of no significance. As luck would have it, he recognised he needed to take action soon on a lease extension. Muhammad was able to extend his lease just under the wire in August. Muhammad and the landlord eventually settled on an amount of £5,000 . If the lease had gone lower than 80 years, the premium would have gone up by a minimum £1,075.
Last Autumn we were approach by Mr and Mrs. M Ramírez , who bought a recently refurbished apartment in Oldham in June 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Oldham with an extended lease were in the region of £267,600. The mid-range ground rent payable was £65 billed annually. The lease lapsed in 2093. Considering the 67 years left we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of costs.
Last Christmas we were phoned by Mr and Mrs. S Thompson , who moved into a ground floor apartment in Oldham in November 2003. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar flats in Oldham with a long lease were worth £201,200. The mid-range ground rent payable was £55 billed yearly. The lease ran out in 2082. Taking into account 56 years remaining we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.