Obtaining a lease extension, so that a leaseholder can feel secure in remaining in their home, is a frequent action undertaken by conveyancing solicitors at George Ide LLP, who have the expert property law experience to deal with the specialist administration required.
A leaseholder who has lived in their house or flat for two years and has a lease with a term of less than 80 years remaining is entitled under tenancy laws to negotiate a new 90-year lease extension on top of the existing unexpired term.
There are two main financial advantages for a leaseholder to do this at the earliest opportunity:
1. As the length of lease remaining decreases the so-called ‘marriage value’, which is paid to the freeholder, will increase; and,
2. If a sale of the property is proposed, a buyer will have more difficulty in obtaining a mortgage, meaning the re-sale value of the lease is reduced from its market value.
A formal procedure for obtaining a lease extension has to be followed, starting with the service of a Tenant’s Notice on a landlord. The property will have to be professionally valued and an experienced conveyancer instructed to safeguard the leaseholder’s interests.
The legal administration needs to be carried out efficiently because there are deadlines to be met and the tenant will be liable for the landlord’s fees, even if the application for a lease extension is unsuccessful.
The residential conveyancing team at George Ide LLP has helped many people in the Chichester area of West Sussex with various aspects of tenant and landlord law, enabling them to enjoy financial security and peace of mind relating to their leasehold homes.
For more advice on lease extensions, including an estimate of costs, call our friendly legal advisers in our Chichester office. Alternatively, to find out more about the team, please click on our partner profiles.