On the balance of probabilities if you own a flat in Reading you actually own a long leasehold interest over your property
It is generally accepted that a property with over one hundred years remaining is worth approximately 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 |
|---|---|
| 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; |
| 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 remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Reading lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to protracted negotiations with the landlord of her two bedroom apartment in Reading, Bethany initiated the lease extension process as the eighty year mark was quickly nearing. The lease extension completed in June 2015. The landlord’s fees were kept to an absolute minimum.
Last month we were approach by Dr Archie Stewart , who completed a purpose-built apartment in Reading in February 2008. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Similar homes in Reading with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 invoiced per annum. The lease ended on 11 January 2084. Having 58 years left we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.
Mr Aaron David bought a ground floor apartment in Reading in January 1998. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar flats in Reading with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish on 17 November 2104. Taking into account 78 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.