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Leasehold Extension / Enfranchisement
However, when the term reaches 70 years or less it is more difficult to obtain a mortgage on normal terms. It therefore becomes difficult to sell the flat and so it reduces in value.
An extension of the lease reverses this process and the full value of the flat can be realised on sale. This is the main reason people extend their leases.
The longer you leave it to extend your lease the more expensive it becomes. The Leasehold Reform Housing and Urban Development Act 1993 (as amended) is legislation which provides an opportunity for an additional term of 90 years, at a peppercorn rent (the same as being ground rent free). The additional 90 years is plus the present unexpired term.
To extend your lease you must be a qualifying leaseholder, i.e. you must own a long lease, and have owned it for the past two years and not be a business or commercial tenant. You do not need to have lived in the property for this period, merely owned the lease for two years or more.
We can provide a valuation to extend your lease or buy your freehold. Please call 01992 300521 for a free initial consultation.
We can also put you in touch with a firm of solicitors who will be able to handle the legal process of your lease extension or enfranchisement.
If you are thinking of extending your lease or are planning to enfranchise your freehold then please talk to Christian Meyer Chartered Surveyors first.
We will be able to explain the advantages of employing a Chartered Surveyor to carry out your valuation.
Your lease is a wasting asset and as its term reduces so does the value of your flat. The extent of this is not fully appreciated in the early years because the decrease in value is generally offset by increases in property values.