DO I NEED TO EXTEND THE LEASE FOR MY FLAT?
A lease is a right to use the property for a specific period of time. As the period of time becomes shorter the value of the lease will decrease.
Sometimes it may prove difficult to sell a property with a short lease because mortgage lenders may be reluctant to lend money to potential buyers on such properties.
Anyone with a lease approaching 80 years unexpired should seriously think of extending it.
HOW DO I EXTEND THE LEASE FOR MY FLAT?
To be eligible for the extension you must have owned the flat for at least 2 years with the original lease being granted for a period over 21 years being residential, as opposed to commercial.
You will need to instruct a solicitor who will start the process by serving an Initial Notice on the landlord, which will offer a premium for the lease extension.
You will also need to instruct a valuer (chartered surveyor) to put a value on the lease extension. The surveyor will use the valuation formula in the Leasehold Reform Housing and Urban Development Act 1993.
Under the Act you are entitled to a further 90 years on your lease with no ground rent payable on the original term or extension, however, you will still have to pay any service charges made payable under the lease terms.
You may be able to negotiate changes to the lease, sometimes known as ‘varying the lease’. Speak to your landlord first.
Once the Initial Notice is served on the landlord you will be responsible for his/ her reasonable valuation and conveyancing costs, as well as your own.
If you are thinking of extending the lease on you flat contact us on 020 8318 4345.