Although most banks will lend where there is a remaining term of 70 years, it is advisable to have at least 80 years remaining on the term of your lease.
Once the lease term reduces to 80 years or below, the cost of a lease extension can increase significantly. In addition, when you come to the sell your flat the reducing term of the lease will have a significant effect on the saleability of your home.
There are two methods available to you in extending the term of a lease:
- By mutually agreeing terms for the lease extension directly with your freeholder/landlord; or
- Under the Leasehold Reform Housing and Urban Development Act 1993, as amended by the Commonhold and Leasehold Reform Act 2002. Once you have owned a leasehold property for at least two years, you are entitled to purchase an extension to the existing lease term by a further 90 years at a peppercorn ground rent. The premium payable for the lease extension is assessed by a surveyor.
Our Residential Property solicitors are available at Ashford, Canterbury and Herne Bay. They are all experts in their field, dedicated to excellent client care, outstanding legal performance and to making the process as stress free as possible.
If you require any further information on the procedure or details of the likely costs on extending the term of a lease, please contact a member of the team who will be happy to help.
