Stephensons has been carrying out lease extensions for a number of years and as a result we can ensure that this process goes smoothly and efficiently for you.
Increasing numbers of properties are built and sold on a leasehold basis as opposed to freehold or commonhold. This is particularly the case with flats. With a Leasehold property, you are actually buying the rights to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125* and although this may seem like a long period of time, you may consider extending the lease sooner rather than later. As the lease becomes shorter the cost of extending the lease become disproportionately greater and the freeholder (the person who owns the property and ground it is built on) is entitled to a share of the increase in the value of the flat should the lease be extended.
The right to request a lease extension generally starts once you have owned the property for two years. If you are thinking of selling a property which still has a relatively short lease, Stephensons can obtain a lease extension before marketing the property. This will make a difference to the sale value. Anyone purchasing a leasehold property should look carefully at the length of the lease remaining and seek the advice of a solicitor regarding the costs of extension to make sure that any investment in this type of property is a sound investment. Any mortgage lender will require that the remaining lease term is of a required minimum length before they will lend money on a property.
*This will vary for the type of property some houses are on a 999 year lease.
