Lease Extension Tip One - Maximise Marketability
Most estate agents will tell you are likely to increase the number of possible purchasers if you have completed the lease extension process prior to marketing your property (as opposed to leaving it to the purchaser to deal with after completion of the sale). This is even more true in a falling market or flat market.
Lease Extension Tip Two - Consider all your options
Speak to your conveyancing lawyer to explore all the options including enfranchisement, If you are experiencing management issues, you may want to consider pursuing one of the collective rights of freehold Enfranchisement or the Right to Manage. A collective enfranchisement could be just a quick as a lease extension. The right to manage is likely to be even quicker.
Lease Extension Tip Three - Mortgage finance
lenders are already starting to tighten their criteria in respect of the remaining lease term that they will lend against.
Lease Extension Tip Four - Fixing a valuation date
Initiating the statutory lease extension procedure sets in stone the valuation date by reference to which the calculations for the lease extension premium is payable. You will need to balance the upward effect of your term reducing against the possible downward effect of a fall in the market value of your property on the premium payable. It is worth bearing in mind that once the remaining term of the lease falls below 80 years then an additional element of premium called “Marriage Value” becomes payable, for the new lease. This element of the premium will increase as the remaining term reduces. If you are close to the 80 year mark then it is important to consider starting the process now.