It’s a harsh certainty that a Bicester residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. 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 market.Where your lease has approximately 90 years left, you need to start thinking about 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 lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in Bicester will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Bicester with more than 100 years outstanding 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society |
Regardless of whether you are a tenant or a landlord in Bicester,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bicester valuers.
Toby owned a studio flat in Bicester being sold with a lease of a little over fifty eight years outstanding. Toby on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Toby to exercise his statutory right. Toby procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2013 we were called by Dr P Martin who, having completed a basement apartment in Bicester in November 1995. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Bicester with a long lease were valued about £295,000. The mid-range ground rent payable was £45 billed monthly. The lease lapsed in 2101. Considering the 75 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
Mr O Kelly bought a basement flat in Bicester in May 2008. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable flats in Bicester with 100 year plus lease were in the region of £250,400. The mid-range ground rent payable was £65 billed per annum. The lease terminated in 2090. Taking into account 64 years unexpired we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of legals.