Chances are that where you own a flat in Reading you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a landlord in Reading,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Reading valuers.
Half a year ago Reuben, came very close to the 80-year mark with the lease on his garden flat in Reading. Having purchased his property twenty years ago, the unexpired term was of no interest. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Reuben extended the lease just ahead of time in July. Reuben and the freeholder via the management company in the end agreed on sum of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £900.
Last month we were called by Mr and Mrs. N Cox , who was assigned a lease of a newly refurbished flat in Reading in April 1995. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Reading with a long lease were valued about £181,600. The average amount of ground rent was £55 billed per annum. The lease ran out in 2077. Having 52 years outstanding we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus legals.
In 2011 we were called by Mr U Laurent who, having took over the lease of a first floor flat in Reading in February 1997. The question was if we could estimate the price would be for a 90 year lease extension. Comparable flats in Reading with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 collected monthly. The lease expired in 2097. Considering the 72 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.