That’s a really easy question – now!
The current economic climate shows no signs of abating and, like most other areas of the economy, the property market continues to be adversely affected. If you are a flat owner with a long lease[ ie , and that was originally granted with a term of at least 20 years] however, there has never been a better time to extend your lease and actually use the slump in property prices to your advantage:
• An extended lease will invariably make your property more marketable
• A lease is a diminishing asset the terms of which reduce daily regardless of a favourable or adverse economic climate
• The cost of lease extension is partly determined by property value at the time that a leaseholder serves a Notice of Claim on their landlord which therefore works to the leaseholder’s advantage if property prices are low
• Long leaseholders have the legal right in extending a lease unless the application is made during the lease enfranchisement process in which case your application is stayed until its completion)
• A lease with 80 years or less remaining will be increasingly expensive to renew as it will be liable for Marriage Value (the potential for increase in the value of the flat arising from the grant of the new lease which requires that this profit is shared equally between the landlord and leaseholder)
• Mortgage lenders continue to adhere to strict lending criteria and will typically not lend against leases of 70 years or less
Bear in mind that lease extensions involve a highly complex area of the law and in order to determine the premium payable for a leasehold extension, valuation surveyors will use a formulate set out by statute.
Thinking of extending your lease? Don’t delay – call us today
Our lease extension team can help you with your lease extension. So, for highly specialist and professional legal and valuation advice from the outset;
- Call us now on 01722 422300, or
- Complete the contact form below.