Are you thinking about extending your lease?
Extend your lease
On this page we have outlined some key facts that we think you will find useful if you are considering a lease extension.
We have also produced a short video which explains the lease extension process – we hope you find it helpful.
WHAT EXACTLY IS LEASEHOLD OWNERSHIP?
HOW LEASE LENGTH AFFECTS THE VALUE OF A PROPERTY
The value of a leasehold property and its marketability are affected by the number of years the lease has left to run.
A lease is always diminishing and is therefore a significant ‘wasting asset’.
Its underlying value declines as the length of the lease reduces.
WHY YOU SHOULD CONSIDER TAKING PRE-EMPTIVE ACTION NOW
Once your lease is 85 years or below, correcting the length of a lease becomes increasingly expensive with every year that passes.
Extending your lease before it reaches this danger zone is certainly worth seriously considering so that your property is ‘ready-to-go’ should you ever need to sell or re-mortgage it.
Extending your lease also provides you with the opportunity to rectify defective clauses that can cause particular problems with mortgage lenders.
TAKE ACTION BEFORE YOUR LEASE FALLS BELOW 80 YEARS!
As you can see from the graph below, you can save many thousands of £££ by extending your lease BEFORE it falls below 80 years. Taking prompt action will avoid ‘marriage value’, whereby the freeholder is entitled to 50% of any uplift in value resulting from a lease extension or freehold purchase.
HOW CAN WE HELP YOU?
We can help you extend your lease so that your property will once again achieve its full market value.
If you have owned your flat for at least two years, you have the legal right to compel your freeholder to grant you a lease extension of an additional 90 years (i.e. your remaining term plus 90 years) and reduce your ground rent to zero. This is subject to certain criteria and we we will be pleased to discuss this to establish whether you are eligible.
Please download our information sheet ‘Your lease extension journey’ for a useful, step-by-step guide to the lease extension process.
Click here to download.