You may think that because you still have 80 years or so left on your lease that you don’t need to have a lease extension. After all, the lease will probably outlive you. New leases are normally set at either 99 or 125 years. In the 60′s and 70′s there was a massive increase in the building of flats and maisonettes. Most of these properties were leasehold.
Those leaseholders with leases on properties built around that time who started off with 125 year leases, are now looking at a decreasing asset with a remaining lease of between 75 and 85 years. If you are one of those people then you should certainly be looking into extending your lease now.
Once the remaining term on your lease dips below 80 years, you have to pay what is called a ‘Marriage Value’ when extending your lease. This makes it all the more expensive. You will also find that the value of your property is being affected. Potential buyers will be put off by the short term remaining on your lease. Most won’t even consider buying your property and those that do, will insist that you extend the lease before they go ahead.
If you are thinking of selling your leasehold property in the near future, and it has a relatively short lease left, then you should look into extending it right away. The process of extending a lease can take anything from between 3 and 8 months, depending on how quickly you agree a cost.
If you are thinking of extending your lease, then be prepared for it to be expensive. Not only do you have to pay your own legal expenses, but you also have to pay the legal costs of the freeholder. Whilst we can help you find a licensed conveyancer or solicitor, the freeholder will have their own representatives, who probably won’t be the most competitive on the market.
Our ‘Guide To Extended Lease Valuations’ will help you understand the complex process involved in coming up with a value for the lease extension and what your options are if you disagree with it.
Find out if it is you should be thinking about extending your lease. Read our handy guide to ‘Why you should consider extending your lease‘.
Use this free calculator to estimate the cost of extending your lease