A Residential Property solicitor is warning homeowners to take a closer look at the length of their leases.
Tom Bridge, a partner at Stephensons Solicitors LLP, believes many home owners could be living in, or buying, properties with short leases, which could in turn lower the potential sale price of their property when they come to sell it on in the future.
Tom says: “Leasehold is much more common today, particularly in new build developments or apartment buildings. A leasehold property owner has actually bought the rights to live in a property for a set period of time, typically 99 or 125 years, although some leasehold agreements are for much longer, even up to 999 years. They then pay ground rent annually to the landowner.
“But if the lease is short, say below 70 years, this could make the property less saleable and even discourage lenders from providing mortgages on the property.
“Home owners can ensure they prevent this scenario by applying for what’s called a lease extension, if they have owned the property for at least two years.
“Although the typical 99 year lease may seem a long period of time, it is better to extend the lease sooner rather than later as the shorter it becomes, the more costly it will be to buy the extension. The freeholder who owns the property and land it is built on will also be entitled to a share in the increase of value of the property should the lease be extended.”
It is relatively easy to extend a lease and Stephensons’ property team can advise and obtain a lease extension before it is put on the market.
Tom adds: “I would advise anyone who is currently purchasing a leasehold property to check the length of the lease and seek legal advice about purchasing an extension to make sure it is a sound investment.”
Stephensons Residential Property specialists have been helping people move home for 30 years. As well as offering expert advice on lease extensions, the firm provides innovative online services including ‘My Case’ which allows clients to check the status of their move at any given time.
ENDS
Notes to editors
Stephensons undertakes all areas of residential conveyancing including sales, purchases and remortgages. The firm’s extensive residential property team acts for local private clients and those referred by local estate agents. For more information visit www.stephensons.co.uk.
Media information Lianne Tracey
Stephensons Solicitors LLP
T: 01616 966 229