As the the remaining lease term of a Runcorn domestic lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Runcorn will qualify for this right; nevertheless a lawyer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Runcorn 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 conveyancer we work with provide it.
Finley was the the leasehold proprietor of a high value apartment in Runcorn on the market with a lease of a few days over 72 years outstanding. Finley informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Finley to exercise his statutory right. Finley obtained expert advice and secured satisfactory resolution informally and sell the flat.
In 2012 we were called by Mr Finley Girard who, having owned a ground floor apartment in Runcorn in March 1996. The question was if we could approximate the price could be to extend the lease by a further 90 years. Similar premises in Runcorn with 100 year plus lease were valued about £210,600. The average amount of ground rent was £45 collected yearly. The lease finished on 26 November 2087. Having 62 years left we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.
Last Autumn we were approach by Mr and Mrs. B André , who bought a purpose-built flat in Runcorn in October 2000. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparable homes in Runcorn with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 collected yearly. The lease expired on 22 October 2098. Considering the 73 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.