When it comes to residential leasehold property in Reading, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years remaining. Anyone in Reading with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. When the lease term has below eighty years outstanding, under the relevant Act the landlord can calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Reading with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
|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.|
|Godiva Mortgages||A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.|
|Halifax|| Minimum 70 years from the date of the mortgage.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|Lloyds TSB Scotland|| Mortgage term plus 30 years subject to an overall minimum term of 70 years|
Lease extensions in Reading can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Last Winter Rory, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Reading. In buying his flat 19 years previously, the length of the lease was of minimal concern. Luckily, he became aware that he would soon be paying an escalated premium for a lease extension. Rory was able to extend his lease just under the wire in August. Rory and the freeholder in the end settled on the final figure of £5,000 . If the lease had fallen below 80 years, the premium would have escalated by a minimum £1,075.
Last Spring we were e-mailed by Mr and Mrs. L Robinson , who owned a recently refurbished apartment in Reading in January 1999. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Similar properties in Reading with 100 year plus lease were valued about £233,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease ran out in 2082. Taking into account 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 plus costs.
Last month we were e-mailed by Mr Leon Peterson , who completed a one bedroom flat in Reading in October 2010. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Comparative homes in Reading with an extended lease were worth £171,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease terminated in 2071. Taking into account 50 years remaining we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of legals.