When it comes to long leasehold property in Datchet, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Anyone in Datchet with a lease drawing near to 81 years left should seriously consider extending it sooner than later. Once the lease term has under 80 years remaining, under the relevant Act the freeholder can calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Datchet with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Datchet can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Datchet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Eli, started to get close to the 80-year mark with the lease on his studio apartment in Datchet. In buying his home twenty years ago, the unexpired term was of no relevance. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Eli extended the lease at the eleventh hour in September. Eli and the freeholder ultimately settled on a premium of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £1,000.
Dr S Ali owned a studio flat in Datchet in May 2004. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar residencies in Datchet with a long lease were in the region of £171,800. The average ground rent payable was £55 billed every twelve months. The lease ended on 13 May 2075. Considering the 50 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of costs.
Last month we were e-mailed by Dr K Bennett , who acquired a one bedroom flat in Datchet in February 2002. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Datchet with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 billed monthly. The lease ran out on 11 September 2095. Taking into account 70 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.