Extending the lease on a flat: how does a short lease impact property value and why should we extend it?

سؤال: We have been advised to extend the lease on our flat, where we’ve lived for quite a few years.

هناك 75 years left. What difference does it make that our lease is short?

And what’s the “statutory procedure” that has been mentioned to us?

إجابة: When first granted, your lease was probably for 99 years. The less time left on a lease, the less valuable the property becomes and the amount or premium payable to the freeholder to extend the lease is likely to increase.

أيضا, lenders will often only lend money secured on property with leases of 70 years or more left to run, which can limit numbers of future potential buyers.

لكن, you may use the formal procedure laid down in the Leasehold Reform (Housing and Urban Development) فعل (as amended) to extend your lease.

To do this, you’ll need to have owned your property for a minimum of two years and your original lease must have been granted for at least 21 years.

A statutory lease extension gives a leaseholder a 90-year extension which is added to the unexpired term of their existing lease, so such an extension would give you a new term of 165 years.

The rent you pay now under the terms of your lease would be reset to a peppercorn for the duration of the lease, which in practice means no rent will be payable.

You’ll have to pay a premium for the lease extension and will be liable for your landlord’s reasonable costs as well as your own. These are likely to include surveyor and legal costs.

Sometimes a leaseholder and freeholder negotiate a voluntary lease extension, in which case there is no need to use the statutory procedure.

ويمكن لهذه الإجابات يكون سوى تعليق مختصر جدا حول القضايا المطروحة، وينبغي ألا تعتمد على تقديم المشورة القانونية. لا تقبل المسؤولية عن مثل هذا الاعتماد. إذا كان لديك قضايا مماثلة, يجب عليك الحصول على المشورة من محام.

إذا كان لديك سؤال عن فيونا ماكنولتي, email legalsolutions@standard.co.uk أو الكتابة إلى الحلول القانونية, منازل & ممتلكات, مساء الموحدة, 2 شارع ديري, W8 5EE. أسئلة لا يمكن الإجابة بشكل فردي, لكننا سنحاول أن يظهر لهم هنا.

فيونا ماكنولتي هو محام متخصص في العقارات السكنية.



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