Top reasons for Reading lease extension

Main reasons to start your Reading lease extension today:

Increase your lease and increase your Reading property value

Reading leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Reading will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.

Reading property with a lease extension has roughly the same value as a freehold

Leasehold properties in Reading with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may not grant a mortgage on a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Reading?

The lawyers that we work with procure Reading 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 conveyancing solicitor we work with provide it.

Reading Lease Extension Case Studies:

James, Reading, Berkshire

Last October James, came precariously near to the 80-year mark with the lease on his purpose- built apartment in Reading. In buying his home 18 years previously, the unexpired term was of minimal concern. Fortunately, he became aware that he needed to take action soon on Extending the lease. James arranged for a lease extension just under the wire last January. James and the freeholder via the management company subsequently agreed on sum of £5,500 . If the lease had dipped lower than 80 years, the sum would have escalated by a minimum £1,000.

Reading case:

In 2009 we were contacted by Mr and Mrs. U Vincent who, having took over the lease of a first floor apartment in Reading in May 2009. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable homes in Reading with an extended lease were valued about £174,200. The average ground rent payable was £55 collected annually. The lease elapsed on 6 August 2077. Considering the 51 years left we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.

Reading case:

Last November we were e-mailed by Mr N Scott , who acquired a ground floor apartment in Reading in July 2012. The question was if we could estimate the premium would be to prolong the lease by 90 years. Identical properties in Reading with an extended lease were valued about £285,000. The average ground rent payable was £45 invoiced per annum. The lease finished on 21 August 2097. Given that there were 71 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.