Unfortunately that a Datchet residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Datchet property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Datchet will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Datchet with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| TSB | |
| Yorkshire Building Society |
The conveyancers that we work with procure Datchet lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
During the course of the last few months Eli, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Datchet. In buying his flat two decades ago, the length of the lease was of minimal concern. by good luck, he noticed he needed to take steps soon on a lease extension. Eli extended the lease just under the wire last January. Eli and the landlord who owned the flat above subsequently settled on sum of £5,000 . If he had missed the deadline, the amount would have increased by at least £900.
Last Christmas we were e-mailed by Dr Rory Wilson , who purchased a basement flat in Datchet in May 1998. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Datchet with an extended lease were worth £235,600. The average ground rent payable was £60 billed yearly. The lease finished in 2088. Having 62 years outstanding we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus professional charges.
In 2013 we were e-mailed by Ms Phoebe Nelson who, having took over the lease of a first floor flat in Datchet in June 1996. The question was if we could approximate the price would likely be for a ninety year lease extension. Similar properties in Datchet with an extended lease were valued around £174,200. The average ground rent payable was £55 collected yearly. The lease elapsed in 2077. Taking into account 51 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.