Extending a Lease or Buying a Freehold
A lease is a depreciating asset which may need to be extended when it is too short to be easily marketable. Leaseholders can act together to purchase the freehold from their landlord; this is known as leasehold enfranchisement.
If you wish to sell your flat or raise finance which is to be secured over your flat, your buyer or lender will generally want a minimum term of 70 to 75 years remaining on the lease. Once the term is reduced below this figure, you may well find it difficult to sell or raise finance without seeking an extension of the term of your lease.
The rights of leaseholders have been strengthened over recent years but the law and procedures involved in exercising these rights are complex and specialist legal and valuation advice is needed. As a leaseholder you may demand an extension to your lease provided you meet certain criteria which most owners of flats will meet.
Leaseholders of over 50% of the flats in a building can act together to purchase the freehold. The price charged by the landlord, called a premium, will vary depending on certain factors such as the current length of your lease and the property market.
If you extend your lease whilst at least 80 years remain, you could make a substantial saving as the premium to be paid to your landlord is calculated differently.
Get in Touch
We have the expertise to guide you through the process of a lease extension or the purchase of the freehold. To find out more about how we could help you, please contact either Caroline Probert or Jackie Mockford.
