As the the remaining lease term of a Runcorn residential lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Runcorn will qualify for this right; however a lawyer should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake 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 conveyancing solicitor we work with provide it.
Luke was the the leasehold owner of a high value apartment in Runcorn being marketed with a lease of a little over 59 years unexpired. Luke on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Luke to exercise his statutory right. Luke obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2011 we were phoned by Dr N Wright who, having completed a one bedroom apartment in Runcorn in August 1997. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar properties in Runcorn with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease finished on 18 January 2085. Given that there were 60 years unexpired we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus fees.
Last year we were called by Mr and Mrs. W Patel , who completed a one bedroom apartment in Runcorn in September 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Runcorn with an extended lease were in the region of £255,000. The average ground rent payable was £50 billed every twelve months. The lease came to a finish in 2096. Having 71 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.