Lease extensions.
If you are a qualifying leaseholder, you may be able to extend your lease by 90 years and reduce the ground rent to a peppercorn (in effect nil) on a flat. This will usually increase its value, sometimes quite significantly. Where the length of a lease falls below a certain level it can be difficult for a buyer to obtain a mortgage and so the number of available buyers is more limited. A cash buyer will also be advised by his lawyer of this and so the achievable sale price is usually less.
There is a legal process that must be carefully followed. You will usually have to pay a sum of money known as “the premium” to the landlord or landlords (sometimes in addition to your immediate landlord there may be superior landlords).
We work with expert surveyors who can advise on the likely amount of the premium and the likely increase in value of your flat following a lease extension. If you decide to proceed and to ask your landlord to extend your lease, we will guide you through the process from serving notice, liaising with surveyors during valuation and negotiation to finalising and registering the new lease. Wherever possible we will offer you fixed fees for the surveyor’s and legal fees.
Occasionally, where a landlord and flat owner are unable to agree terms, the matter becomes “contentious” and so it is necessary for an application to be made to, and decided by, the First Tier Property Tribunal. This firm cannot undertake contentious work but we do have a relationship with a firm that can undertake this work for you should that become necessary.
Your property transaction is safe in our hands.