Extend your lease
The value of your flat and its marketability are affected by the number of years the lease has left to run.
The underlying value of the flat declines as the length of the lease reduces, and more significantly once the lease falls below 80 years.
A lease is always diminishing and is therefore a significant ‘wasting asset’.
Extending your lease also provides you with the opportunity to rectify defective clauses that can cause particular problems with mortgage lenders.
If your lease is 85 years or below, the longer you wait to address your lease length, the more expensive it will become, so think about extending your lease now. To be more specific:
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.
How we can help you
We can help you extend your lease or buy your freehold so that your flat 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 a member of the project team can advise as to whether you are eligible.
For each new project at Leasehold Solutions, we start the communication progress by gathering as many of the flat owners as possible for an initial presentation. There we outline the options, the pros, the cons and the practical issues of the various courses of action. We gauge the level of support for the different options and let flat owners determine how the project moves forward, remaining the vital central point of contact from start to finish.