Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Datchet. Clearly, the period of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Datchet have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. You should give careful attention before delaying your Datchet lease extension. Putting off that expense now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Datchet,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Datchet valuers.
In the wake of 6 months of lengthy discussions with the freeholder of her two bedroom flat in Datchet, Grace started the lease extension process just as her lease was nearing the critical eighty-year deadline. The transaction completed in May 2015. The freeholder’s costs were negotiated to approximately 500 pounds.
Mr John Ali took over the lease of a first floor flat in Datchet in May 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Datchet with a long lease were valued about £189,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished in 2078. Having 53 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including legals.
Last month we were approach by Mr and Mrs. C Smith , who acquired a basement flat in Datchet in March 2001. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical properties in Datchet with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed per annum. The lease ended on 14 November 2098. Considering the 73 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.