Datchet leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Datchet enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Datchet you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Datchet,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Datchet valuers.
After lengthy correspondence with the freeholder of her studio flat in Datchet, Alisha commenced the lease extension process as the eighty year mark was rapidly advancing. The transaction completed in August 2011. The landlord’s charges were kept to an absolute minimum.
Last year we were approach by Dr L López , who bought a newly refurbished flat in Datchet in April 2010. The question was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable premises in Datchet with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease termination date was in 2096. Considering the 70 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.
Dr Daniel White moved into a purpose-built flat in Datchet in March 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparable flats in Datchet with 100 year plus lease were in the region of £218,400. The average ground rent payable was £60 collected monthly. The lease ran out in 2085. Considering the 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 plus professional charges.