Top reasons for Reading lease extension

Why you should start your Reading lease extension today:

Increase your lease and increase your Reading property value

The re-sale value of a leasehold property in Reading is impacted by how long the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded well before the eighty year mark. Leasehold Reform legislation entitles Reading qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same 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.

Lenders may not finance a property on a short lease

Lenders are really restricting their approach as regards to properties in Reading with short leases. For example you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus reducing the amount of potential buyers.

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

Irrespective of whether you are a tenant or a freeholder in Reading,the lease extension experts that we work with will always be willing 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 Example Cases:

Rosie, Reading, Berkshire,

Following unsuccessful discussions with the landlord of her leasehold apartment in Reading, Rosie commenced the lease extension process as the 80 year threshold was fast nearing. The lease extension completed in October 2014. The freeholder’s fees were kept to an absolute minimum.

Reading case:

Mrs Jessica François bought a one bedroom flat in Reading in August 2006. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative homes in Reading with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 invoiced monthly. The lease ended in 2100. Having 74 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.

Reading case:

Last January we were e-mailed by Mr and Mrs. H Jackson , who owned a one bedroom flat in Reading in November 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Reading with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease elapsed on 20 October 2089. Having 63 years left we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 not including legals.