The re-sale value of a leasehold property in Runcorn is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded well before the 80 year cut off point. Current legislation enables Runcorn qualifying lessees to an additional term of 90 years on top of the unexpired term, at a notional rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Runcorn with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you enhanced control over the value of your Runcorn leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Max was the the leasehold proprietor of a high value apartment in Runcorn on the market with a lease of fraction over 61 years left. Max on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Max to exercise his statutory right. Max procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2013 we were called by Dr R Lewis who, having was assigned a lease of a one bedroom apartment in Runcorn in August 2007. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparative homes in Runcorn with an extended lease were valued around £227,800. The average ground rent payable was £45 invoiced per annum. The lease expiry date was in 2091. Having 65 years left we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
In 2009 we were contacted by Mr and Mrs. L Rodríguez who, having acquired a purpose-built apartment in Runcorn in May 1999. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Runcorn with a long lease were valued around £275,000. The average amount of ground rent was £55 billed every twelve months. The lease elapsed on 25 August 2102. Given that there were 76 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.