The use and enjoyment of a leasehold property is naturally governed by the terms of the lease. At the end of the lease term, the property will revert to the owner of the freehold title. A leasehold property therefore becomes a less attractive asset, as the years go by. If you are the owner or a leasehold property it is crucial that the length of the lease is preserved in order to protect the value and marketability of the property. Many buyers and mortgage lenders will not accept leases with less than 50-60 years left to run, and this will make your property much more difficult to sell.
In the majority of cases, you will have certain rights to extend the lease after having owned it for 2 years, whether by informal agreement with your landlord or by formal application following a statutory procedure. The Landlord is entitled to a premium (the price) for the lease extension and this is based on the formula set out by the relevant legislation. You should note that the longer you leave it, the more expensive it will be to extend.
Our solicitors have extensive experience of these issues and can provide legal advice on all of the problems and pitfalls of this complex area of law. Our lease extension team has solicitors based across both our London and High Wycombe offices.
When a lease extension is granted, the premium payable is arrived at through a technical calculation. We will and do work closely with chartered surveyors to achieve the best arrangement for you in the circumstances.