The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Reading may extend the lease for an additional ninety years in accordance with statute. Do think carefully before delaying your Reading lease extension. Shelving the costs now simply increases the price you will eventually have to pay to extend the lease.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank |
Lease extensions in Reading can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 Reading lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jonathan owned a studio apartment in Reading being sold with a lease of a few days over sixty years outstanding. Jonathan informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Mrs Stephanie Gray moved into a newly refurbished flat in Reading in October 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative properties in Reading with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out on 28 October 2081. Given that there were 55 years left we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.
In 2010 we were e-mailed by Mrs M Mercier who, having took over the lease of a first floor flat in Reading in September 1999. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical premises in Reading with an extended lease were worth £295,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed on 6 January 2101. Considering the 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.