This might have no particular significance on a day to day basis while the flat owner continues to live there, enjoying all of the benefits of any other property owner, but it can make a real difference if they wish to dispose of the flat. The problem is that in legal and property circles, a leasehold title with eighty years or less left to run is thought of as a short lease, which can make it very difficult to sell or mortgage the property and can affect its value. If you are considering buying or selling a flat or own one as an investment and the unexpired term of the lease is less than or approaching eighty years then you should take advice on steps you might need to consider and issues of which you should be aware. For example, a major consideration that we come across is that the value of the premium payable to a landlord can greatly increase if the lease falls below eighty years. Taking care of this particular point before the lease falls below 80 years can save much time, money and aggravation later on!

 

Many leaseholders have a legal right to extend their lease to a term of ninety years rent free in addition to the existing unexpired term under the Leasehold Reform, Housing and Urban Development Act 1993 as amended. Exercising this right could increase the value of the property and make it much easier to sell later on.

 

Not every lease is eligible for extension, but if your lease was originally granted for more than twenty one years, you have owned the lease for at least two years and the landlord is not a charitable housing trust you may be able to begin the formal procedure for acquiring the ninety year lease extension.

 

The procedure commences with the service by the flat owner of a notice on the landlord exercising the right. Matters then follow a prescribed procedure under the Act. At Barber Titleys we are able to provide a full service on all aspects, taking you through the whole procedure for acquiring a ninety year lease extension.

 

In a competitive housing market, every advantage you can provide to a potential buyer will increase the chances of a good sale. Our team of property experts work with clients through every stage of buying or selling all types of property including leasehold titles. As a team, and together with our specialist planning department, we can provide expert legal advice on every aspect of property ownership, from planning applications to conveyancing and HIPs, commercial leases and financing options and, of course, lease extensions.