Why you should commence your Bicester lease extension

Why you should start your Bicester lease extension today:

A Bicester lease depreciates with the years remaining on the lease.

Bicester leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Bicester tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Bicester you must check if your lease has between 70 and 90 years left. There are compelling reasons why a Bicester flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

Leasehold residencies in Bicester with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies will not grant a mortgage on a short lease

Banks and building societies are really restricting their approach as regards to properties in Bicester with short leases. For instance you may find that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus reducing the amount of potential buyers.

What makes us experts in Bicester lease extensions?

The conveyancing solicitors that we work with procure Bicester lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Bicester Lease Extension Example Cases:

Jayden, Bicester, Oxfordshire,

Jayden was the the leasehold proprietor of a 2 bedroom flat in Bicester on the market with a lease of just over 59 years outstanding. Jayden informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jayden to invoke his statutory right. Jayden procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.

Bicester case:

Mrs V Rodríguez bought a one bedroom apartment in Bicester in November 2008. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Bicester with an extended lease were valued around £243,000. The average ground rent payable was £65 collected quarterly. The lease lapsed on 17 October 2089. Given that there were 63 years unexpired we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus costs.

Bicester case:

Last Summer we were e-mailed by Mr and Mrs. E Ali , who moved into a first floor apartment in Bicester in June 2010. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable homes in Bicester with a long lease were valued about £181,600. The average amount of ground rent was £55 collected every twelve months. The lease finished in 2078. Considering the 52 years remaining we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus expenses.