Why you should start your Runcorn lease extension

Main reasons to start your Runcorn lease extension today:

A Runcorn lease depreciates with the years remaining on the lease.

The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Runcorn have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Runcorn lease extension. Postponing that expense today simply escalates the premium you will ultimately be required to pay to extend the lease.

Runcorn property with a lease extension is almost the same value as a freehold

Leasehold residencies in Runcorn with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not issue a mortgage with a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Runcorn?

Irrespective of whether you are a tenant or a freeholder in Runcorn,the lease extension lawyers 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.

Runcorn Lease Extension Example Cases:

Rebecca, Runcorn, Cheshire,

Following lengthy discussions with the freeholder of her two bedroom flat in Runcorn, Rebecca started the lease extension process just as her lease was coming close to the all-important 80-year threshold. The transaction was finalised in May 2010. The freeholder’s costs were negotiated to a tad over 450 GBP.

Runcorn case:

Mr and Mrs. C Jackson bought a garden apartment in Runcorn in April 2005. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable premises in Runcorn with an extended lease were worth £265,000. The average ground rent payable was £50 invoiced annually. The lease expiry date was on 1 November 2099. Having 74 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.

Runcorn case:

Last year we were phoned by Ms K Peterson , who completed a one bedroom apartment in Runcorn in November 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar residencies in Runcorn with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced annually. The lease terminated on 12 August 2079. Having 54 years remaining we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus fees.