For anyone whose Oldham flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold properties in Oldham with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Oldham can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 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.
In 2014 Lucas, started to get close to the eighty-year threshold with the lease on his garden flat in Oldham. Having purchased his home two decades ago, the lease term was of no concern. As luck would have it, he realised he needed to take action soon on Extending the lease. Lucas extended the lease at the eleventh hour last January. Lucas and the landlord ultimately agreed on a premium of £6,000 . If the lease had dipped to less than eighty years, the sum would have escalated by a minimum £1,075.
In 2013 we were e-mailed by Mr and Mrs. P Leroy who, having bought a basement flat in Oldham in July 2005. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable premises in Oldham with 100 year plus lease were worth £184,000. The average ground rent payable was £55 billed quarterly. The lease lapsed in 2079. Having 53 years remaining we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.
Last Summer we were e-mailed by Mr Finley Wilson , who took over the lease of a first floor flat in Oldham in October 1995. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Oldham with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease terminated on 20 August 2099. Taking into account 73 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.