The market value of Reading leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is less than 80 years
Leasehold residencies in Reading with more than 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Reading,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 Reading valuers.
After protracted negotiations with the freeholder of her basement apartment in Reading, Shannon commenced the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work completed in July 2007. The freeholder’s fees were negotiated to approximately 550 GBP.
Last Spring we were e-mailed by Mrs Rosie Brooks , who was assigned a lease of a garden apartment in Reading in November 2011. The question was if we could estimate the premium could be to extend the lease by ninety years. Comparative properties in Reading with an extended lease were valued about £200,000. The average amount of ground rent was £50 collected yearly. The lease came to a finish on 2 August 2104. Having 78 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
Mr and Mrs. S Khan moved into a studio apartment in Reading in August 2006. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparable residencies in Reading with 100 year plus lease were valued about £267,600. The mid-range amount of ground rent was £65 collected monthly. The lease expired on 26 June 2093. Taking into account 67 years remaining we estimated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of legals.