Is my lease long enough?
In a static property market the value of your flat will decrease as the lease term runs down. This decrease is more pronounced when the lease term falls below 80 years.
As you must have owned the lease for 2 years before you can ask for an extension, if you are thinking of buy a flat with a short lease you may be able to get the seller to start the lease extension process.
If you are a leaseholder with a short lease you could:-
1. Apply for a 90 year extension under the Leasehold Reform, Housing and Urban Development Act 1993
or
2. Join with your fellow leaseholders in buying the freehold. When you have done this you can extend your leases. The contribution per leaseholder is usually less than the cost of a 90 year extension.
or
3. You could simply negotiate a longer term and agree a price with your existing freeholder.
If you are thinking of extending your lease, you should act before your lease term falls below 80 years or you will have to pay more for it under current legislation.
For further information on how we can assist you, please contact Ian Mitchell on 020 7940 4055 or click here to email him directly.
