When it comes to residential leasehold premises in Datchet and Langley, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Datchet and Langley with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below 80 years outstanding, under the relevant statute the landlord is entitled to calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Datchet and Langley with more than 100 years unexpired 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service will provide you increased control over the value of your Datchet and Langley leasehold, as your property will be more valuable and marketable in relation to the 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.
During the course of the last few months Luke, started to get close to the eighty-year mark with the lease on his garden flat in Datchet and Langley. In buying his flat twenty years previously, the unexpired term was of little bearing. by good luck, he recognised he would imminently be paying an escalated premium for a lease extension. Luke extended the lease just ahead of time last April. Luke and the landlord in the end agreed on the final figure of £6,000 . If he had missed the deadline, the sum would have increased by a minimum £1,000.
Mr and Mrs. O Cook acquired a basement apartment in Datchet and Langley in March 2007. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Identical properties in Datchet and Langley with 100 year plus lease were valued around £227,800. The mid-range amount of ground rent was £45 billed yearly. The lease ran out in 2090. Having 65 years left we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
An example of a Freehold Enfranchisement decision for a Datchet and Langley property is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The unexpired term as at the valuation date was 69 years.