For those whose Runcorn flat is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you enhanced control over the value of your Runcorn leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the freeholder of her one bedroom flat in Runcorn, Robyn initiated the lease extension process as the 80 year mark was swiftly nearing. The legal work was concluded in March 2008. The landlord’s costs were restricted to under 650 pounds.
Last month we were called by Mr and Mrs. G Adams , who acquired a garden flat in Runcorn in January 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Runcorn with an extended lease were valued about £227,800. The mid-range ground rent payable was £45 billed yearly. The lease elapsed in 2089. Taking into account 65 years outstanding we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
Last Winter we were phoned by Mr and Mrs. P Mitchell , who purchased a one bedroom flat in Runcorn in September 2002. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Identical flats in Runcorn with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 invoiced quarterly. The lease concluded on 7 May 2100. Having 76 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.