There is no doubt about it a leasehold flat or house in Runcorn is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Runcorn will meet the qualifying criteria; nevertheless a lawyer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Runcorn,the lease extension experts that we work with will always be willing 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 Evan, started to get close to the eighty-year threshold with the lease on his studio apartment in Runcorn. In buying his home 18 years ago, the unexpired term was of little importance. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. Evan was able to extend his lease just in the nick of time in July. Evan and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If the lease had gone to less than 80 years, the amount would have become more exhorbitant by at least £900.
In 2013 we were e-mailed by Mr and Mrs. K Baker who, having bought a studio flat in Runcorn in January 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable residencies in Runcorn with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease lapsed on 1 January 2083. Considering the 57 years remaining we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.
Mr and Mrs. I Parker was assigned a lease of a ground floor apartment in Runcorn in June 2006. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable flats in Runcorn with 100 year plus lease were worth £245,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated on 10 February 2094. Taking into account 68 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.