Runcorn leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Runcorn enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Runcorn you really ought to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Runcorn with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Engaging our service gives you better control over the value of your Runcorn leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.
In recent months Joseph, started to get close to the 80-year mark with the lease on his studio flat in Runcorn. Having bought his property 18 years previously, the length of the lease was of minimal importance. As luck would have it, he realised he would imminently be paying an inflated amount for Extending the lease. Joseph was able to extend his lease just in the nick of time last June. Joseph and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he not met the deadline, the figure would have become more exhorbitant by a minimum £1,050.
Last Christmas we were contacted by Mr and Mrs. C Robinson , who purchased a first floor apartment in Runcorn in April 2011. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Runcorn with an extended lease were valued around £255,000. The average ground rent payable was £50 billed yearly. The lease ran out on 12 September 2095. Having 71 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
Dr L Gunderson bought a ground floor apartment in Runcorn in March 2002. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical residencies in Runcorn with a long lease were valued about £254,200. The average amount of ground rent was £60 invoiced per annum. The lease elapsed on 1 October 2075. Considering the 51 years outstanding we estimated the premium to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of fees.