The nearer a residential lease in Reading gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner than later. The majority of flat owners in Reading will qualify for this right; nevertheless a lawyer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Reading with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Reading,the lease extension lawyers that we work with will always be happy 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.
14 months ago Harvey, came critically near to the eighty-year threshold with the lease on his two bedroom flat in Reading. In buying his home two decades ago, the lease term was of no significance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Harvey was able to extend his lease just ahead of time in September. Harvey and the landlord who owned the flat above ultimately agreed on the final figure of £5,000 . If he not met the deadline, the price would have become more exhorbitant by at least £1,075.
Last April we were phoned by Mr A Wright , who was assigned a lease of a first floor flat in Reading in October 1996. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical properties in Reading with 100 year plus lease were worth £166,800. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed in 2076. Considering the 50 years outstanding we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of fees.
Mr Y Wright purchased a garden flat in Reading in May 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Reading with a long lease were valued around £280,000. The average ground rent payable was £45 collected monthly. The lease elapsed in 2096. Taking into account 70 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.