Trying to sell short lease property can be a real headache – If you have one, it’s best to plan ahead.
Lease extension is the answer and we work with a number of solicitors who can help.
Lease Extension – 5 simple facts
- The formal route: Leaseholders have the legal right to force their freeholder to grant an extra 90 years on the lease (provided the original lease term was at least 21 years).
- The informal route: Alternatively, leaseholders can voluntarily negotiate a lease extension with their freeholder – but there are real risks with this and it’s essential to get advice from a specialist lease extension solicitor.
- There is no requirement to have ever lived in the flat – but (with the exception of the voluntary route above and paragraph 4 below), the leaseholder must own the flat at least 2 years before applying for a formal lease extension.
- To avoid the two-year ownership rule: Normally you must have owned a flat for 2 years before applying for a formal lease extension (there is no such requirement for informal lease extensions). But when buying a flat, there is an alternative – the vendor, provided they have owned the flat for 2 years, issue a formal notice to start the lease extension process without the need for any money to change hands, and on completion of sale, simply assign the benefit of that notice to the new owner. This means the new owner can get an immediate lease extension without a 2 year wait.
- The 80 year rule. Be aware of “the marriage value” – this simply means that as soon as the lease term drops 1 day below 80 years, the freeholder can charge a much higher premium to extend any lease.
If you have a short lease on a residential property, contact us on 01392 427500 or email firstname.lastname@example.org. And we will be happy to point you in the right direction.