A simple guide to help find if you need a lease extension

Do you own a flat? If so it will almost certainly have a leasehold title. Leases are granted for a fixed period of time, often just 99 years. This is known as the term of the lease. When the term expires, the property goes back to the landlord.

The law now gives leaseholders the right to require their landlord to grant them an extension for an additional 90 years. But many people think that if their lease has got 50 or 60 years still to run, that should be plenty of time.  

However the majority of mortgage lenders will not now lend on leasehold property when the lease has less than 70 years to run. This makes it difficult to sell a property in such circumstances.

Even if your lease still has more than 70 years unexpired, it may still be worth thinking about applying for a lease extension. Here are our recommendations: 

 

Term unexpired

Recommendation

Over 100 yearsYou don’t need to get a lease extension yet, but it may still be worth investigating.
Between 100 and 80 yearsIt is not essential to get an extension, but it is highly recommended as once the term drops below 80 years the amount payable for an extension is increased by a figure known as ‘marriage value
Between 80 and 70 yearsYou should apply for a lease extension, especially if you are considering selling the flat.
Below 70 yearsApply straight away – the longer you leave it the more the value of your home will drop, and you would find it very difficult to sell.

 









How do you know how long your lease has got to run?

If you don’t have a copy of your lease you can either 
  1. ask the Conveyancing Solicitor who acted for you when you bought the property, or 
  2. check with the land registry. http://www.landregistry.gov.uk/public For a small fee they will provide you with details of the registered title of your property, including information about the lease term.
Bear in mind that the earlier you apply for a lease extension, the less you will have to pay for it. So it makes sense to get your lease extended sooner rather than later, or it will cost you more.

For advice on how to get a lease extension give Fridaysmove a ring now and we can explain things to you and help you through the process.

 


by admin
Monday 14th of September 2015 09:34:29 PM