The issue of lease length
You are probably visiting this website because you are a flat owner and need to deal with your lease length issue. Whilst this issue may have come as a shock to you, it is very important to understand that the length of the existing lease on your flat has huge implications on both the underlying value of your property and its future marketability. More specifically:
Under 70 years – most mortgage lenders would choose not to lend against flats with leases below this level or will offer much less favourable terms.
70 to 80 years – it is important to take action now, as the cost of rectifying the problem is increasing exponentially.
Over 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.
One of the only constants in life is change. Our circumstances, plans and goals can suddenly alter at any moment. If you deal with the complex issue of extending your lease now, you will protect what is probably the biggest asset you possess – your home – and be fully in control of your own life path.
Your legal rights
Various Acts entitle you to extend your lease, buy your freehold or take over the management of your building, provided you meet certain criteria. We have a full understanding of these Acts and can advise you on how they translate into the reality of extending your lease or buying your freehold and related activities.
The most recent is The Commonhold and Leasehold Reform Act 2002, which in terms of lease extension and freehold acquisition made the conditions contained within The Leasehold Reform, Housing and Urban Development Act 1993 easier to fulfil.
Are you eligible?
The eligibility to extend your lease or purchase your freehold is determined by factors such as lease length, where the flat is situated and your particular circumstances.
You can exercise your right to a lease extension individually, but freehold acquisition must be undertaken by groups of at least two flat owners.
It is possible to negotiate informally with freeholders outside the legislation, which means that even those not eligible can often still take part.
Although the criteria can be summarised simply, the various Acts’ rules are quite complex and each case is different.
If you are not already in contact with Leasehold Solutions regarding a particular transaction, please contact us to determine whether you are eligible for lease extension or freehold acquisition.