The re-sale value of a leasehold property in Runcorn is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year mark. Statute entitles Runcorn qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Runcorn with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Runcorn can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Runcorn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the freeholder of her basement apartment in Runcorn, Sophia started the lease extension process just as her lease was approaching the all-important 80-year threshold. The legal work completed in October 2011. The landlord’s fees were kept to an absolute minimum.
In 2014 we were called by Mr and Mrs. W Ricardo who, having moved into a newly refurbished flat in Runcorn in October 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical premises in Runcorn with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease expired on 3 September 2088. Having 63 years unexpired we estimated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 not including professional charges.
Last month we were contacted by Mr T Bell , who owned a basement flat in Runcorn in October 2007. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable properties in Runcorn with an extended lease were valued about £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease terminated on 15 October 2099. Having 74 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.