Unfortunately that a Runcorn residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Runcorn property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Runcorn will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Runcorn with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax |
Irrespective of whether you are a tenant or a freeholder in Runcorn,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 experience and the close ties they enjoy with Runcorn valuers.
During the course of the last few months Freddie, came seriously near to the eighty-year threshold with the lease on his purpose- built flat in Runcorn. In buying his home two decades ago, the length of the lease was of minimal concern. by good luck, it dawned on him that he needed to take action soon on a lease extension. Freddie was able to extend his lease just under the wire in September. Freddie and the freeholder via the managing agents eventually agreed on the final figure of £5,000 . If he not met the deadline, the price would have become more exhorbitant by at least £1,050.
In 2011 we were called by Dr Henry Young who, having owned a one bedroom flat in Runcorn in November 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Runcorn with a long lease were valued around £220,400. The average amount of ground rent was £45 invoiced per annum. The lease came to a finish in 2090. Considering the 64 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 not including legals.
Dr Alicia Jones owned a purpose-built apartment in Runcorn in June 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Runcorn with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease elapsed in 2101. Considering the 75 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.