With a domestic leasehold premises in Datchet, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Anyone in Datchet with a lease nearing 81 years left should seriously think of extending it sooner rather than later. When the lease term has below 80 years left, under the relevant Act the freeholder can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Retaining our service gives you increased control over the value of your Datchet leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the landlord of her purpose-built flat in Datchet, Amelia started the lease extension process as the eighty year mark was quickly advancing. The transaction completed in January 2006. The landlord’s costs were restricted to about 650 GBP.
In 2010 we were contacted by Mr and Mrs. V Dupont who, having moved into a basement flat in Datchet in August 1999. The question was if we could estimate the premium would be for a 90 year lease extension. Comparative homes in Datchet with an extended lease were valued around £257,800. The mid-range amount of ground rent was £65 invoiced annually. The lease ended in 2090. Having 65 years unexpired we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of expenses.
In 2011 we were approached by Mr and Mrs. K Norbert who, having was assigned a lease of a purpose-built flat in Datchet in February 1999. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable homes in Datchet with 100 year plus lease were valued about £196,400. The mid-range amount of ground rent was £55 billed every twelve months. The lease elapsed on 12 November 2079. Given that there were 54 years unexpired we calculated the compensation to the landlord for the lease extension to be between £35,200 and £40,600 not including fees.