Unfortunately that a Bicester residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Bicester property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. The majority of flat owners in Bicester will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Bicester with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
Engaging our service gives you better control over the value of your Bicester leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her garden flat in Bicester, Isabella commenced the lease extension process as the eighty year deadline was rapidly coming. The transaction completed in July 2013. The freeholder’s charges were negotiated to less than 650 pounds.
Last year we were approach by Dr Lewis Ramírez , who owned a first floor flat in Bicester in March 2010. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Identical properties in Bicester with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease elapsed on 19 May 2104. Taking into account 79 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2012 we were phoned by Mr A Cook who, having moved into a basement apartment in Bicester in March 1999. The question was if we could approximate the premium could be to extend the lease by ninety years. Identical homes in Bicester with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease came to a finish in 2093. Having 68 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.