Datchet leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Datchet enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Datchet you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Datchet with over 100 years unexpired 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Datchet leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the freeholder of her leasehold flat in Datchet, Jessica commenced the lease extension process just as the lease was nearing the critical 80-year deadline. The transaction completed in September 2007. The landlord’s fees were negotiated to about 500 GBP.
In 2010 we were called by Mr Ali White who, having moved into a newly refurbished apartment in Datchet in October 2003. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable residencies in Datchet with an extended lease were valued about £290,000. The average amount of ground rent was £45 billed yearly. The lease finished in 2097. Given that there were 73 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Mr and Mrs. G Vincent took over the lease of a basement flat in Datchet in April 2007. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar homes in Datchet with an extended lease were in the region of £240,600. The average ground rent payable was £60 billed every twelve months. The lease elapsed in 2086. Considering the 62 years remaining we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus costs.