Chances are that where you own a flat in Datchet you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Datchet leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jamie owned a 2 bedroom flat in Datchet being sold with a lease of fraction over 72 years remaining. Jamie informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jamie to exercise his statutory right. Jamie procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Summer we were called by Dr U Ramírez , who moved into a recently refurbished flat in Datchet in April 2011. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar homes in Datchet with an extended lease were in the region of £300,000. The average amount of ground rent was £50 collected per annum. The lease elapsed on 10 August 2101. Having 75 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Mr and Mrs. L Stewart acquired a one bedroom apartment in Datchet in October 2005. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Datchet with a long lease were valued about £252,800. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated on 11 January 2091. Given that there were 65 years outstanding we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.