Leaseholders: do you know your rights?
- 10th June 2010
- Property Tips
Where to get advice about the rights of leaseholders and how much to calculate the cost of a lease extension.
A recent report from the Law Society points out how many freeholders are taking advantage of homeowners who do not understand leasehold options.
Timesonline recently reported how many leaseholders are unaware that the freeholder is entitled to demand a cash sum for renewal of any lease that falls below 80 years.
Paul Marsh, former president of the Law Society, says: "The key to realise is that leases are a wasting asset. The shorter the lease when you sell, the worse your position. And if you want to extend in a hurry, you're in a bad negotiating place.
"I know of one client who was offered a 30-year extension when, under the relevant Act, anyone is entitled to 90 years. Another client was offered an extension for £15,000, against a subsequent independent valuation of £8,000."
He adds: "The statutory process behind lease extensions can take a long time, especially if the landlord wants to play the game. I've known of landlords threatening to draw it out if the leaseholder doesn't cooperate on price."
Leaseholders can take advantage of free advice from their Citizens Advice Bureau and also use the free calculator service from the The Leasehold Advisory Service. The leaseholders calculator enables leaseholders to enter a home's value, ground rent and remaining lease term. The leasehold calculator will work out roughly how much could be payable for an extension on a lease.
ludlowthompson now provides a lease extension service for customers, to help London property sellers with a short lease.
I know of one client who was offered a 30-year extension when anyone is entitled to 90 years...
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS