Main reasons to commence your Runcorn lease extension

Top reasons for lease extension now:

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

When it comes to domestic leasehold property in Runcorn, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years left. Leasehold owners in Runcorn with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has fewer than 80 years outstanding, under the current Act the freeholder is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.

Runcorn property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions may not grant a mortgage with a short lease

Most high street banks are tightening their criteria and a meaningful number now want flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Considering many flats in Runcorn were created in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

Get in touch with one of our Runcorn lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you increased control over the value of your Runcorn leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Runcorn Lease Extension Case Summaries:

David, Runcorn, Cheshire,

David owned a studio apartment in Runcorn on the market with a lease of a few days over 72 years left. David informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were David to exercise his statutory right. David obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.

Runcorn case:

Dr Rachael Smith owned a basement flat in Runcorn in July 1996. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar homes in Runcorn with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded on 24 January 2098. Having 72 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.

Runcorn case:

In 2014 we were approached by Dr Y Bertrand who, having owned a studio apartment in Runcorn in January 2003. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative flats in Runcorn with 100 year plus lease were worth £256,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease expired in 2078. Taking into account 52 years left we approximated the premium to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of professional charges.