The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Runcorn may extend the lease for a further ninety years under legislation. Do give careful consideration before delaying your Runcorn lease extension. Shelving that expense now simply increases the price you will ultimately have to pay to extend the lease.
Leasehold properties in Runcorn with in excess of one hundred years outstanding on the lease are often regarded as a ‘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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Runcorn can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
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 a wealth of experience 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.
In the wake of 6 months of unsuccessful discussions with the landlord of her garden apartment in Runcorn, Jessica initiated the lease extension process as the eighty year mark was rapidly nearing. The transaction was finalised in July 2008. The landlord’s fees were negotiated to below 550 pounds.
In 2009 we were approached by Mr K Ricardo who, having completed a one bedroom apartment in Runcorn in January 2004. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparable properties in Runcorn with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 collected per annum. The lease concluded on 22 February 2079. Having 53 years unexpired we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including professional charges.
In 2009 we were approached by Mr and Mrs. F Anderson who, having was assigned a lease of a newly refurbished apartment in Runcorn in November 2001. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Runcorn with a long lease were in the region of £220,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed on 5 January 2090. Considering the 64 years outstanding we approximated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of fees.