Reading leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Reading will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 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 residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Reading can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience procuring Reading lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her first floor apartment in Reading, Nicole started the lease extension process just as the lease was coming close to the critical eighty-year threshold. The legal work completed in July 2008. The landlord’s charges were kept to an absolute minimum.
Dr Millie Young bought a purpose-built flat in Reading in November 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable flats in Reading with a long lease were valued about £290,000. The mid-range ground rent payable was £45 collected monthly. The lease ran out in 2099. Given that there were 73 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
Last Summer we were contacted by Ms Rosie Clarke , who owned a one bedroom flat in Reading in May 1995. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in Reading with a long lease were worth £240,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease concluded in 2088. Taking into account 62 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus legals.