Top reasons for Runcorn lease extension

Top reasons for lease extension now:

Increase your lease and increase your Runcorn property value

Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Runcorn. Clearly, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Runcorn have the right to extend the lease for an additional ninety years under statute. Please give careful attention before delaying your Runcorn lease extension. Putting off the cost now likely increases the price you will ultimately incur for a lease extension

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

Leasehold properties in Runcorn with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.

Lenders may decide not to loan monies with a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Runcorn lease extensions?

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 Case Summaries:

Emily, Runcorn, Cheshire,

After lengthy correspondence with the landlord of her purpose-built flat in Runcorn, Emily initiated the lease extension process just as the lease was coming close to the critical eighty-year deadline. The transaction was finalised in August 2005. The landlord’s fees were kept to an absolute minimum.

Runcorn case:

Last Winter we were approach by Dr Leo Díaz , who owned a basement flat in Runcorn in May 2003. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparable properties in Runcorn with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 collected quarterly. The lease terminated on 10 June 2086. Taking into account 60 years remaining we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of expenses.

Runcorn case:

In 2009 we were contacted by Mrs Mollie Wood who, having owned a first floor apartment in Runcorn in April 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Runcorn with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ran out on 18 April 2097. Taking into account 71 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.