The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Oldham can extend the lease for a further 90 years under statute. Do give careful consideration before delaying your Oldham lease extension. Shelving that expense today simply increases the amount you will ultimately be required to pay for a lease extension.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Retaining our service gives 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 wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ali, came critically close to the eighty-year threshold with the lease on his first floor apartment in Oldham. In buying his home two decades ago, the unexpired term was of minimal significance. by good luck, he recognised he needed to take action soon on Extending the lease. Ali arranged for a lease extension at the eleventh hour last April. Ali and the freeholder via the managing agents eventually agreed on sum of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £900.
In 2011 we were called by Mr Arthur Davies who, having moved into a first floor flat in Oldham in March 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative homes in Oldham with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 billed monthly. The lease lapsed in 2102. Given that there were 76 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
Last January we were contacted by Mr and Mrs. M Pérez , who bought a first floor flat in Oldham in June 2003. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar premises in Oldham with a long lease were worth £252,800. The mid-range ground rent payable was £65 collected per annum. The lease elapsed in 2091. Given that there were 65 years outstanding we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 not including legals.