If you have a long residential lease you may be entitled to buy the freehold or extend the term of the lease under the provisions of the Leasehold Reform, Housing and Urban Development Act 1993 as amended by the Commonhold and Leasehold Reform Act 2002.
At present when property values are depressed the calculation of the payment which would be due to the freeholder will be similarly depressed and if funds permit now may be the best time to acquire your freehold (if this is available) or to extend the remaining term of the lease. The current President of the Law Society has recently issued a press release as follows:
“Flat owners could actually benefit from the lower prices in the market. Most leases run for 99 years, but once they have less than 80 years left to run the cost of buying a lease extension increases significantly. However, it is possible to extend the lease and it is cheaper to do so when the market values are low, as the cost of extending is partly determined by the value of the property.
“Extending the lease could make it more saleable, so leaseholders should contact their solicitors and look into extending their term even if they are not planning on selling straight away.
“Delaying it could hit flat owners with a double whammy. When property prices go up and the length of time left on the lease has gone down, it will be more expensive to extend it.”
If you want to consider your position and would like to acquire your freehold or extend your long leasehold term please get in touch and we will be pleased to advise you of your rights.
