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If you are thinking about extending the lease on a flat that you own, then there are several things to consider and weigh up before starting on your lease extension journey.

 

Every property has lease terms or lengths and at the end of the lease the property returns to the overall freeholder. This is an old fashion, feudal law but one that can be overcome by extending the lease on the property.

 

Typically it is blocks of flats, maisonettes or properties that have been converted into apartments that are a leasehold.

 

As long as you have owned the property for over 2 years, then you are able to apply to add up to 90 further years onto your existing lease term. You don’t need to be living in the property yourself to extend the lease, it could be part of your investment portfolio or a buy-to-let that you own.

 

Reasons Why You Might Want to Extend your Lease

 
  • If the number of years left is getting low, typically around 85-90 years is when property owners consider increasing their lease length.
  • Properties with a longer lease are more valuable.
  • It is much easier to sell a property with a longer lease.
  • It can be difficult to obtain mortgages on a property with a short lease.
  • If you plan to pass property onto future generations, you may wish to secure a long lease for your children’s benefit.
 

Next Steps

 

If you have decided to extend the lease on your property then it is important to act sooner rather than later, as the cost of doing so will increase as the lease length diminishes. Once a lease becomes shorter than 80 years the premium can jump upwards quite drastically.

 

Extending your lease can be a complex process so it is important to instruct Property Solicitors with the knowledge and experience required to manage the transaction effectively. You will also need to allow plenty of time for the process as it involves dealing with multiple aspects and third parties, which is why our Property Law Team at Lamb Brooks always encourage property owners to act sooner rather than later to avoid higher cost or delays.

 

You would need to action the following:

  1. Inform the freeholder of the intention to extend the lease and which may be via a privately agreed basis or the statutory route (formal route).
  2. Appoint a Property Solicitor with the required expertise in this area.
  3. Appoint an appropriate qualified valuer for the required/advised Valuation.
  4. Make a formal offer.
  5. Negotiate premium and pay the deposit if required.
 

By taking the statutory route and using specialist Property Solicitors the freeholder will have to comply with time scales and deadlines which may help push your transaction. You will also benefit from the bespoke advice of your Property Solicitor and have the legal backing should any issues or disputes arise along the way.

 

Getting in Touch

 

Our Property Law Team are here to help you navigate the best route forward in securing a more valuable property. Along with standard purchases and sales, the team have a wealth of experience in more complex matters such as lease extensions, transfers, equity release, re-mortgages and auction purchases.

 

Call our switchboard on 01256 844888, email enquiries@lambbrooks.com or speak to our live chat assistant who is available on our website 24/7.

 

We look forward to assisting you and helping you make the most of your investments.

 

Other articles you may be interested in reading:

Landlord’s Survival Guide: What You Need to Know Now

How to Sell Your Property: Attracting a Buyer

Can I Make a Will From Home?

 

The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice.  The law may have changed since this article was published.   Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.