An increasing number of properties are built and sold on a leasehold basis as opposed to freehold. This is always the case with blocks of flats.
With a leasehold property, you are effectively buying the right to live in a property for a set period of time. Modern leases of flats tend to be either for 99 years or 125 years and although this may seem like a long period of time, you can consider extending the lease sooner rather than later.
As the lease becomes shorter, the cost of extending the lease becomes disproportionately greater and the freeholder (who is the person that owns the property that the ground is built on) is entitled to a share of the increased value of the flat if the lease is extended. The right to request an extension of the lease generally starts once you have owned the property for 2 years, and this is set down in statute.
If you are thinking of selling a property which still has a relatively short lease, we can obtain a Lease Extension before you actually market the property. This will make a difference to the sale value i.e. increasing it. Anyone purchasing a leasehold property should look very carefully at the length of the lease term remaining and to seek advice from a Solicitor or Conveyancer regarding the cost of extension to make sure that any investment is sound.
If you are borrowing money to purchase such a property, all mortgage lenders will require that the remaining lease term is of a minimum length before they provide funds for the transaction.
For further advice on Lease Extensions, or to discuss your case, please contact Anne Lockwood through the online enquiry form or telephone 01564 777250
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