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As the owner of a flat, let on a long lease, you may have a legal right to extend that lease by an additional 90 years and to reduce the ground rent to nil. This right was first introduced by the Leasehold Reform, Housing and Urban Development Act 1993 and has been extended since.
Essentially, if you are the owner of a long lease with 21 years or more left to run and have been the owner of that lease for at least 2 years, then you probably qualify.
Usually, the only argument with the landlord is over the price to be paid. That is why this Firm works in close collaboration with a Surveyor experienced in this area, Mr Michael Stapleton, senior partner of Michael Stapleton & Company. www.mikestapleton.net
But why would you want to extend your lease?
These are some of the reasons:
- If you are selling a lease with less than 80 years left to run, your buyer will be advised to ask you to obtain a lease extension. That will delay your sale and cost you money;
- Extending a lease with less than 80 years left is more expensive because you have to pay your Landlord something called “marriage value”. This does not apply where the lease has 80 years or more to run. Extending sooner rather than later will save you money;
- A lease that has been extended will be more valuable than one that has not;
- The annual ground rent will be reduced to nil.
A very useful and informative organisation is the Leasehold Advisory Service whose web site contains a detailed summary of leasehold extension and associated areas. www.lease-advice.org.
Please call or email Adrian Dann to discuss your situation. adrian.dann@btconnect.com. Mr Dann is a member of the Association of Leasehold Enfranchisement Practioners.
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