Datchet leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Datchet will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some situations you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Datchet with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Datchet 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 conveyancer we work with provide it.
Two years ago Eli, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Datchet. In buying his property 19 years previously, the unexpired term was of no relevance. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Eli extended the lease at the eleventh hour in June. Eli and the freeholder via the management company in the end agreed on a premium of £6,000 . If the lease had gone below eighty years, the premium would have escalated by a minimum £1,150.
Mr and Mrs. J Mason bought a one bedroom flat in Datchet in November 2003. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative homes in Datchet with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 invoiced annually. The lease lapsed on 13 June 2103. Taking into account 79 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Last Autumn we were called by Mrs K Torres , who purchased a newly refurbished apartment in Datchet in April 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Datchet with a long lease were worth £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease finished on 1 November 2092. Considering the 68 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.