Owning a leasehold property means that you have a lease from the freeholder (sometimes called the landlord) to use the property for a number of years. Leasehold ownership is widespread within England and Wales and especially in London, where around 40% of properties are held on long leases. A typical term would be 125 years.
As a lease term decreases it can impact adversely on the value of the property. This is particularly significant when the lease has less than 80 years remaining. At this point, mortgage lenders become reluctant to lend and potential purchasers will be concerned about the term of years remaining.
There is a statutory right to extend your lease once you have owned the property for two years and we have a specialist team of lawyers who have a wealth of experience dealing with the statutory process for lease extensions.
To extend your lease term the following criteria must be met:
- It must be a long lease, which is one that has been granted for a term exceeding 21 years
- The landlord must not be a Charitable Housing Trust
- The lease must not be a business tenancy
- You must have owned your property for at least two years
Extending your lease is likely to increase the value of your property and also make it easier to sell and the property will be more attractive to a mortgage lender.
If you meet the above criteria and wish extend your lease then you must serve a notice on your freeholder which includes a premium which will be payable for the extension.
A surveyor should be instructed to confirm the value of the lease extension which will be proposed as the premium. Once a premium has been suggested by the surveyor, a notice needs to be served on your landlord that you wish to extend your lease.
Linder Myers can prepare and submit the notice to your landlord, negotiate with your landlord and agree the terms of the new lease and complete the transaction for you.
We offer a competitive fixed fee service however if negotiations become protracted we will always advise you first, of any additional costs.Contact our Conveyancing team for more information