Oldham leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is under 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 your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Oldham will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| The Mortgage Works |
Retaining our service will provide you increased control over the value of your Oldham leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Tyler was the the leasehold proprietor of a studio apartment in Oldham being marketed with a lease of fraction over 72 years left. Tyler on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Tyler to exercise his statutory right. Tyler obtained expert advice and secured an acceptable deal informally and sell the flat.
In 2011 we were e-mailed by Dr Stephanie Morel who, having bought a first floor apartment in Oldham in July 1997. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparative premises in Oldham with 100 year plus lease were valued about £270,000. The mid-range ground rent payable was £65 invoiced yearly. The lease expired on 23 April 2094. Given that there were 68 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
Mrs Lucy Gunderson moved into a ground floor apartment in Oldham in January 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable premises in Oldham with 100 year plus lease were valued around £208,600. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed on 1 March 2083. Having 57 years left we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including legals.