Runcorn leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Runcorn will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain situations you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 lawyers that we work with procure 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.
Last October Benjamin, started to get close to the eighty-year threshold with the lease on his ground floor flat in Runcorn. Having bought his property 18 years previously, the length of the lease was of no relevance. Fortunately, he recognised he needed to take action soon on a lease extension. Benjamin was able to extend his lease just in the nick of time last September. Benjamin and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the sum would have gone up by at least £925.
Last Autumn we were approach by Mr and Mrs. J Rodríguez , who acquired a basement flat in Runcorn in April 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Runcorn with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed per annum. The lease terminated in 2101. Considering the 75 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
In 2010 we were e-mailed by Mr W Nelson who, having owned a basement apartment in Runcorn in August 2002. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative homes in Runcorn with a long lease were valued around £168,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease expired on 24 August 2081. Given that there were 55 years outstanding we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.