When should I renew my leasehold?
Do you own a leasehold property?
Do you know its value is reducing every year?
Do you know your property may be unsaleable?
What you need is a lease extension. If you have owned a leasehold property for more than 2 years you are entitled to a Lease Extension by law. The premium you pay for the lease extension will depend, in part, on the value of your property but the crucial element is the unexpired term of your lease. In essence the shorter your lease the more expensive it becomes to obtain an extension. If your lease has less than 80 years left to run it also becomes more expensive to have an extension because the Landlord can charge half of an additional element called “marriage value” to the premium you have to pay. The answer is to obtain an extension as soon as you possibly can and, if possible, obtain the lease extension before the unexpired term of your lease falls below 80 years.
If you do not have an extension you may find you can not sell your property or your property may not be acceptable for mortgage purposes. Many lenders will not lend against properties which have leases of 70 years or less to run, there are also some lenders who will not lend if the lease has less than 90 years to run.
Contact our expert property lawyers for advice on extending your lease, you can call us on 01929 422233 or email at property@ellisjones.co.uk
How can we help?
When you submit this form an email will be sent to the relevant department who will contact you within 48 hours. If you require urgent advice please call 01202 525333.
