If you have a less than eighty years remaining on your lease do not bury your head in the sand. The shorter a lease term becomes, the more costly it is to rectify the problem later with a Lease Extension. There are examples of Lease Extension premiums at least doubling within a few years, particularly where lease lengths have slipped below the critical eighty-year level. Use an online Lease Extension Calculator to obtain an estimate as to the likely premium involved in extending your lease.
By extending your lease or purchasing the freehold and making subsequent lease or management changes, the saleability and value of the property will be increased.
It is usually only once a leasehold owner comes to sell that they realise that the lease term has slipped by alarmingly quickly. Hasty Lease Extension valuations and enquiries made to the landlord as to what he would take for a lease extension. This leaves the landlord in a position of strength, especially if they know that the leaseholder needs to sell.
In the last 24 months we have witnessed a toughening of lenders’ attitude towards short leases. It is fairly easy to predict that within the next years most lenders will refuse to lend on properties with less than 75 years remaining. Therefore, now is the time to act.
The Fridaysmove Lease Extension Calculator is built on the formula in the Leasehold Reform Housing and Urban Development Act 1993 (as amended) and provides an estimated premium for a leaseholder based on a given number of additional years.
Anyone undertaking a Lease Extension should take professional advice. The estimated Premium provided by the Lease Extension Calculator is a guide only and should not be relied on in any negotiation or discussions without speaking to a professional first.