Runcorn leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Runcorn residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Runcorn you really ought to investigate if your lease has between 70 and ninety years left. There are good reasons why a Runcorn flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Runcorn can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Runcorn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her purpose-built apartment in Runcorn, Molly started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The transaction completed in October 2006. The landlord’s charges were negotiated to less than 600 GBP.
Last Christmas we were approach by Mr E Girard , who purchased a garden flat in Runcorn in August 1999. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative residencies in Runcorn with an extended lease were in the region of £256,600. The average amount of ground rent was £60 billed quarterly. The lease elapsed on 4 January 2078. Having 52 years remaining we approximated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 plus legals.
Last month we were called by Mr and Mrs. W Thompson , who completed a studio apartment in Runcorn in March 1995. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar premises in Runcorn with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease end date was on 11 April 2089. Taking into account 63 years outstanding we estimated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus costs.