The re-sale value of a leasehold property in Datchet is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed in advance of the eighty year mark. Current legislation enables Datchet qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Datchet with in excess of one hundred years remaining on the lease are often regarded as a ‘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 purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Lease extensions in Datchet can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Datchet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the landlord of her two bedroom flat in Datchet, Abigail started the lease extension process as the eighty year mark was swiftly nearing. The transaction completed in March 2010. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were approached by Dr Alisha Dupont who, having owned a one bedroom flat in Datchet in October 2012. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Datchet with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease lapsed in 2095. Having 70 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
Dr Grace Roberts took over the lease of a recently refurbished apartment in Datchet in June 2011. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative premises in Datchet with a long lease were valued about £223,400. The average ground rent payable was £60 invoiced monthly. The lease terminated in 2084. Considering the 59 years remaining we estimated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of fees.