Extending your Property Lease
If you have purchased a leasehold property, you will only own your home for a fixed period. The ownership of the property returns to the landlord when the contract comes to an end. Before the lease runs out, you may wish to extend it, therefore enabling you to keep ownership of the property.
As the length of the lease decreases, so does the value of your home. It's in your best interest to further the lease. If you plan to have a mortgage on the property or you are planning to sell the property, you or the proposed buyer may have difficulties obtaining a mortgage as the lender will prefer to have a lease of at least 70-80 years left on the term.
To apply for an extension to your lease, you must have owned the property for 2 years. If successful you will be granted a further 90 years plus the remainder of the term of the current lease.
It's in your best interests to extend your lease term before it goes below 80 years. As then you will have to pay a sum of money to the landlord when you seek the extension, this is called the marriage value.
You will need to serve a notice on the landlord, this notice must include, specific information and we would suggest that you instruct an expert to assist you with this.
If you are planning to sell the property and have concerns that the lease term will put off potential buyers, it's possible that provided you have served a claim notice, you can transfer the right to seek the extension to the new buyer.