The value of Datchet leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than 80 years
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
The lawyers 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 lawyer we work with provide it.
Subsequent to unsuccessful discussions with the landlord of her ground floor apartment in Datchet, Tia initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The transaction completed in June 2008. The landlord’s charges were kept to an absolute minimum.
Last Summer we were called by Mrs Abigail André , who acquired a studio apartment in Datchet in August 1997. The question was if we could approximate the premium would be to extend the lease by 90 years. Comparable residencies in Datchet with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed monthly. The lease terminated in 2095. Considering the 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.
Mr and Mrs. B Phillips took over the lease of a first floor flat in Datchet in April 2000. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Datchet with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished on 17 April 2084. Given that there were 58 years unexpired we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including professional charges.