The only way is down when it comes to Datchet lease terms. Datchet properties that have a residual term shorter than eighty years will drop in value at a rapid rate, and the cost to extend your lease will increase.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Datchet leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Kai, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Datchet. Having purchased his property two decades ago, the length of the lease was of no interest. Luckily, he realised he would imminently be paying an inflated amount for a lease extension. Kai arranged for a lease extension just in the nick of time last January. Kai and the landlord who owned the flat above eventually settled on sum of £6,000 . If he failed to meet the deadline, the figure would have become more exhorbitant by at least £1,150.
In 2014 we were e-mailed by Dr Lucas Ricardo who, having took over the lease of a first floor apartment in Datchet in August 2012. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparative residencies in Datchet with 100 year plus lease were valued around £200,000. The average amount of ground rent was £50 invoiced yearly. The lease ended on 22 October 2104. Considering the 78 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
Last Autumn we were approach by Ms Shannon Miller , who completed a one bedroom apartment in Datchet in January 2000. The question was if we could approximate the price would likely be to extend the lease by an additional years. Comparative premises in Datchet with a long lease were valued around £267,600. The average ground rent payable was £65 collected annually. The lease came to a finish on 12 March 2093. Given that there were 67 years left we approximated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of fees.