How important is the length of a lease? And can I easily extend it?
Leasehold is the most common form of flat ownership in the UK, however if you are considering buying a leasehold property you need to think carefully about how many years are left on the lease and whether it will be easy to extend it should you wish to. A property with a short term left on the lease is generally less desirable, however it is worth investigating the costs of extending the lease as it will likely add thousands to the value of the property in the long run.
Most property owners are legally entitled to extend their lease as long as the property has been owned for at least 2 years. Generally you will be able to extend the lease (on top of the remaining term) by 90 years for a flat and 50 years for a house. As leasehold law is very complicated the cost of extending a lease varies dramatically depending on the flat's value, the lease length and ground rent. You'll also have to factor in costs for legal fees and valuations.
If you are extending your lease you must take expert legal advice so as to ensure you don't prejudice the future sale of your property. You can find official information and guidance on leasehold properties at the Government leasehold website.
7th April 2016
DISCLAIMER: Neither ludlowthompson nor their ‘experts’ take any responsibility for any action or loss incurred by readers of these pages. The reader acts on advice at their own risk. Answers to questions are not exhaustive. Financial advice must always be sought from a professional financial adviser
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS