If you own a leasehold flat, the length of the lease is a critical factor to consider. The shorter the remaining lease term, the more it can affect the value of your property.
As your lease term reduces so will its value. This will however have a much greater impact on the value once it reaches 80 years left on the lease. At this point, if you want to extend the lease term you will need to pay more than before due to an additional charge called marriage value, which is something included in the valuation which will be run by your specialist surveyor.
Once the lease term falls below 80 years, banks may be unwilling to lend, making it harder for potential buyers to secure a mortgage. This means that a shorter remaining lease could lead to a greater decrease in the value of your property and limit your potential buyer pool (to, for instance, only cash buyers). By extending your lease, you can increase the value of your property and make it more attractive to potential buyers.
Extending your lease
The first step is to check whether you qualify for the statutory right to extend your lease. To qualify, you must have owned your property for at least two years and the original lease must have been for more than 21 years. After this, your landlord will require a formal notice – including details of any premium you are willing to pay – and for terms to be finalised upon acceptance.
This process can be complex, so it’s essential to work with a law firm and a solicitor that has extensive experience in enfranchisement, like Daniel Stern at Slater Heelis. Our team of experts have worked on countless lease extensions, which means we can support your requirements to the highest standard. We also work closely with specialist surveyors who can accurately assess the value of the lease extension, ensuring that you receive a fair deal.
At Slater Heelis, we understand that every situation is unique, and as a result – we take the time to understand your needs fully. We will guide you through the process and ensure that your interests are protected every step of the way.
If you would like to find out more about how Slater Heelis can support you with extending your lease, do not hesitate to contact us today to learn more about protecting your investment. Say hello on 0161 969 3131 or fill in our contact form and one of our colleagues will be in touch at the earliest opportunity.