Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Bicester. Inevitably, the length of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Bicester have the right to extend the lease for a further ninety years under legislation. You should give careful attention before delaying your Bicester lease extension. Holding off that expense now only increases the price you will eventually have to pay for a lease extension
Leasehold properties in Bicester with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Bicester leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold owner of a studio apartment in Bicester being sold with a lease of a little over fifty eight years outstanding. Caleb informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Ms C Williams moved into a basement apartment in Bicester in February 2003. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable premises in Bicester with a long lease were worth £267,600. The mid-range amount of ground rent was £65 collected annually. The lease came to a finish on 12 November 2092. Given that there were 67 years remaining we calculated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus legals.
Last Autumn we were contacted by Ms W Young , who completed a one bedroom apartment in Bicester in May 2001. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable homes in Bicester with a long lease were in the region of £206,200. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed on 4 February 2081. Given that there were 56 years left we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.