If you are a long leaseholder of a flat you may be experiencing problems selling your property. This is because mortgage providers are generally reluctant to extend funding for the purchase of a property where the lease has less than 75 years left to run. You are entitled to a new lease of 90 years plus the unexpired term of your original lease. Obtaining a lease extension may make your flat more appealing to buyers.
Here is an overview of the process.
1. You must qualify
You must be a long leaseholder ie. you must have been granted a lease for a term of 21 years or more;
You must have owned your flat for at least two years;
There are certain exceptions such as you cannot extend your lease if your landlord is a charitable housing trust. Please do not hesitate to contact us and we will be able to advise further.
2. Ascertain the likely premium payable
You are likely to need the services of a surveyor in order to establish what you will have to pay for the new lease.
In addition to this you also need to bear in mind that you will be responsible for payment of your own valuation and legal costs as well as the landlord’s costs.
3. Serve notice
This formally starts the process and lets your landlord know that you want a lease extension and of the proposed terms. From this point you become liable to pay the landlord’s costs.
4. The landlord’s request for further information and/or counter notice
Your landlord is able to request further information. If it does this you should respond within 21 days.
It may however, go straight ahead and serve a counter notice. The counter notice should be served within two months from the date that you served your notice.
If the landlord responds and agrees to your request the terms will then need to be negotiated. You have at least two months to negotiate however, if you cannot agree terms you must make an application to the First Tier Tribunal. If your landlord does not respond then you will need to make an application to the Court for a Vesting Order.
Need advice? Let us help:
If you would like more information regarding the possibility of extending your lease please do not hesitate to contact Eleanor Cornthwaite on 0161 761 4611 or alternatively email; firstname.lastname@example.org.