Datchet leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Datchet tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Datchet you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Datchet with more than one hundred years unexpired on the lease are sometimes regarded as a ‘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 maintenance charges justify it.
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|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.|
|Lloyds TSB Scotland||Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
Lease extensions in Datchet can be a difficult process. We recommend you obtain guidance from a lawyer 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.
Connor owned a 2 bedroom flat in Datchet on the market with a lease of a few days over sixty years left. Connor informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2014 we were phoned by Mrs Emma Reed who, having acquired a basement apartment in Datchet in May 2006. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable premises in Datchet with an extended lease were worth £171,800. The average ground rent payable was £55 invoiced quarterly. The lease ended in 2071. Given that there were 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of fees.
Dr E Roberts completed a one bedroom apartment in Datchet in May 2012. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable flats in Datchet with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 invoiced yearly. The lease terminated in 2091. Considering the 70 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.