Why you should commence your Reading lease extension

Top reasons for lease extension now:

A Reading lease depreciates with the years remaining on the lease.

Reading residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.

An extended lease is almost the same value as a freehold

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

Lending institutions may decide not to lend on a short lease

Banks and building societies do not like short residential leases. You are likely to encounter problems if you need to sell your flat in Reading if the remaining lease term is below the criteria set by most banks and building societies. Different lenders have different requirements but in the main they are looking for a minimum remaining lease term of seventy years.

Get in touch with one of our Reading lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Reading,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Reading valuers.

Reading Lease Extension Case Studies:

Caleb, Reading, Berkshire,

Caleb was the the leasehold owner of a high value flat in Reading on the market with a lease of fraction over 59 years unexpired. Caleb on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Caleb to exercise his statutory right. Caleb procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.

Reading case:

Last Autumn we were contacted by Mr and Mrs. I Martínez , who completed a basement apartment in Reading in January 2010. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Similar flats in Reading with a long lease were in the region of £243,000. The average amount of ground rent was £65 billed per annum. The lease elapsed on 8 February 2089. Considering the 63 years unexpired we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including professional charges.

Reading case:

Last February we were called by Mr and Mrs. A Peterson , who bought a one bedroom apartment in Reading in January 2010. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Identical properties in Reading with 100 year plus lease were valued around £181,600. The average amount of ground rent was £55 collected yearly. The lease lapsed in 2078. Given that there were 52 years remaining we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.