Lease extensions can play an important role in helping you retain the value of your asset
If you are considering extending your lease of residential property our team of experienced property lawyers can provide all the help you need to protect your position.
In England and Wales almost all land is owned on a freehold or leasehold basis. Whereas freehold property is owned outright and indefinitely, leasehold is owned for a limited period of time. As time reduces the number of years left to run on the lease, the value of your leasehold property diminishes.
In general terms, the shorter the remaining term the more expensive the lease will be to extend. When the term for which a lease has been granted expires, the lease comes to an end and the tenant must return the property to the landlord.
The issue of extending the lease is often not considered until an owner wishes to sell their leasehold property. This can hold up your property sale which can lose a buyer. We find that most buyers will be nervous about accepting a lease with less than 90 years or so left to run. In these circumstances buyers may not be prepared to proceed unless and until the lease has been extended, so it makes sense to extend the lease before marketing. Additionally, if the lease has a particularly short term remaining the property may not be regarded as being acceptable for mortgage purposes.
There is a legal process in place that provides a framework for leases being extended - a qualifying tenant of residential property is able to require the landlord to extend the lease by a specified number of years in return for payment by the tenant. Alternatively, there is sometimes a place for co-operative negotiations with the landlord. We can help choose the right way forward for you as there can be some technically difficult factors that benefit from advice, for example, it is important to consider the amount of the ground rent that will be charged by the landlord.
What Can We Do For You?
Prettys team of specialist property lawyers are able to advise you on all aspects of a residential lease extension. With expertise in the area, we provide clear, easy to understand advice to guide you through:
- Considering the best way to maintain the value of your property
- Achieving an easier sale by making the property more attractive to buyers
- Making the property acceptable to mortgage lenders, which is very important if your buyer needs a mortgage
- Seeking the opportunity to reduce ground rent costs
To speak to our expert team of lease extension solicitors, get in touch with us today.
Why Choose Prettys?
Prettys' residential property team regularly assists clients with lease extensions. We understand the process and what needs to be focused on, allowing us to help you meet your requirements.
For answers to some of the most common questions on lease extensions, please scroll down to the FAQs section at the bottom of this page.
To discuss your options and obtain advice in this area please contact our residential property team on 01473 232121, complete our online enquiry form or send an email to firstname.lastname@example.org and we’ll be in touch.