If you own a leasehold flat, it’s essential to think about the time remaining on your lease and to consider whether a Lease Extension is required.
Why? Because as the lease gets shorter, not only does it become more expensive to extend and mortgage lenders may be reluctant to lend on a property with a short contracted lease. If you want to sell your flat, you could encounter difficulties unless you consider a lease extension.
Did you know?
- If the remaining lease term drops below 80 years, the cost of extending it rises by its “marriage value”.
- In the past, if your lease had fallen below 80 years, there was little that you as a tenant could do. Now, thanks to legislation that came onto the statute books in the 1990s, it’s all changed.
The Good News…
In simple terms, if you have a flat, under the terms of the Leasehold Reform, Housing and Urban Development Act, 1993, you can add 90 years to your unexpired term – and there’s no ground rent to pay. This is exceptionally good news.
But.
It’s quite a complicated process to try to do this yourself. You may not feel comfortable to negotiate terms and costs. How do you know you’re getting value? Property Fusion can help. You need excellent advice and guidance on this important matter, so we’d be happy to offer you the benefit of our experience and expertise. We’ll focus on reaching a positive win-win solution for both sides.
With us, you can avoid those easy pitfalls; it’s quicker from start to finish, too.
What’s more, Property Fusion has excellent working relationships with a number of highly experienced solicitors, as does our sister company Lawton and Dawe, who have full knowledge of legal practices and procedures.
The Benefits of Extending Your Lease
- As the leaseholder, you’ll have peace of mind – your property investment is secure on a long-term basis.
- The freeholder will appreciate their tenants’ commitment to continuity.
There’s a lot of work to do, so let Property Fusion help you every step of the way. Ask us about our fees, too. We may be able to offer you our services on a referral basis.
Change is afoot!
Legislation is due to change in late 2025 under The Leasehold and Freehold Reform Act 2025 which will see.
- New lease extensions will be for 990 years, not just 90 years.
- Ground rent will still be abolished on new lease extensions.
- The marriage value (a cost that applies when leases drop below 80 years) will be scrapped, reducing extension costs.
- The process will become simpler and more transparent, with standardised calculation methods.
