Leasehold ownership has become widespread in the UK over recent years.
However where the lease has less than 80 years remaining, property owners will find that the process of obtaining a lease extension becomes significantly more expensive due to the marriage value (which is the potential ‘profit’ which would arise from the landlord’s obligation to the grant of the new lease) becoming relevant. Before the crucial 80 year mark, the marriage value is not taken into consideration and therefore the premium you would pay for the grant of a new lease would be substantially lower.
With mortgage lenders reluctant to lend against leasehold property’s with a term of 80 years or less left and purchasers concerned about buying as this deadline gets nearer, extending your lease is likely to increase the value of your property and also make it easier to sell.
If you are considering a Leasehold Extension you should first appoint a specialised solicitor to guide you through the legalities. Our property solicitors represent property management companies, landlords, residents associations and individuals, providing practical legal advice to and agree the terms of the new lease and complete the transaction for you.
Supporting individual lease extensions and collective enfranchisement (which enables owners in a block of flats to collectively purchase the freehold interest in their building) if you are considering extending your lease then please call us on 0800 042 0700 to discuss.