If you are a long leaseholder of a house you may be experiencing problems selling your property because the lease has a limited time left to run. Mortgage providers are generally reluctant to extend funding for purchase of a property where the lease has less than 75 years left. Obtaining a lease extension may make your house more appealing to buyers.
You may be entitled to a new lease for the remainder of the existing term, plus a further 50 years. No premium is payable but the lease can contain a modern ground rent, reviewable after 25 years.
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 home for at least 2 years;
There are certain exceptions such as you cannot extend your lease if your landlord is a charitable housing trust, if your lease has already expired or if the lease has been extended in the past. Please do not hesitate to contact us and we will be able to advise further.
2. Serve notice
This formally starts the process and lets the landlord know that you want a lease extension and of any changes that you would like to make to the terms of the existing lease. You become responsible for the landlord’s costs at this stage.
3. The counter notice
The landlord should serve a notice in reply to your Notice within two months of the date of service.
4. Agree the terms of the extended lease
You are entitled to a lease extension of 50 years plus the unexpired term of your original lease. This can be varied by agreement. If the terms cannot be agreed then you may make an application to the First Tier Tribunal.
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 by way of email; email@example.com.