The market value of a leasehold property in Oldham depends on how long the lease has remaining. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be concluded well before the eighty year mark. Current legislation enables Oldham qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Oldham with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Oldham can be a difficult process. We recommend you get guidance 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 dealing with Oldham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo owned a 2 bedroom apartment in Oldham being sold with a lease of fraction over 72 years outstanding. Milo informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Mr and Mrs. D Sánchez was assigned a lease of a first floor apartment in Oldham in November 2009. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative homes in Oldham with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated on 11 January 2105. Given that there were 79 years outstanding we approximated the premium to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of legals.
Last September we were approach by Mr and Mrs. V Jones , who purchased a recently refurbished flat in Oldham in August 2001. We are asked if we could approximate the price could be to extend the lease by ninety years. Identical residencies in Oldham with an extended lease were in the region of £270,000. The average amount of ground rent was £65 billed monthly. The lease concluded on 7 January 2094. Having 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.