If you own, or are about to purchase, a leasehold flat it is important that you understand the implications of being a leaseholder.
Rather than owning the building, or part of it, your lease is a contract with the landlord giving you conditional ownership for a fixed period of time - the duration of your lease. The period of time that remains unexpired on your lease has a significant effect on its resale value. A flat with a short lease can be difficult to sell.
Under the terms of Leasehold Reform, Housing and Urban Development Act 1993 (as amended) if you have owned your flat for at least two years, whether you have ever lived there or not you are, in most cases, you are entitled to extend your lease. Your lease extension will be for a term of 90 years in addition to your lease term (unexpired). No ground rent will be payable for the entire new term of your lease.
The majority of leasehold properties would initially have had lease terms of between 99 and 125 years. If your lease was allowed to run its course ownership would often revert back to the Freeholder at the end of the term. In reality the unexpired term of your lease usually gets extended by the leaseholder before it reaches expiry.
Protect The Value Of Your Lease - Don't wait too long!
If you own your lease to your flat you should consider extending your lease while the unexpired term still exceeds 80 years, as once it falls below this point the price of your lease extension will increase substantially. We are experts in advising you on the process of extending your lease.
The amount payable for a lease extension can be calculated by a Chartered Surveyor specialising in this work. If you would like advice on extending your lease do not hesitate to call Dominic Henderson on 07825 537522 or email email@example.com