A property with a limited number of years left on the lease may be hard to sell because prospective buyers are likely find it difficult to obtain a mortgage.
Mortgage lenders are reluctant to lend money to a prospective buyer unless the lease has a requisite number of years left on the lease.
If you are struggling to sell your property, you may wish to purchase the freehold title or extend the lease.
Can I extend my lease?
Various factors are taken in to account, the main factor being that you must have owned your property for a minimum of two years and you must have been granted a lease of 21 years or more.
You cannot extend your lease if your lease has already expired, if the lease has been extended previously or of your landlord is a charitable trust.
How much will it cost me?
If you are looking to extend the lease of your house, generally you do not have to pay a premium, however, your landlord may ask for their representatives legal costs to be paid on their behalf. Your ground rent may also increase to a modern rent, from the date which your additional 50 years term begins.
What do I need to know?
You are entitled to extend your lease for a period of 50 years, in addition to the unexpired term of your original lease.
If the terms between you and your landlord cannot be agreed, or if your landlord refuses to extend your lease, then you can make an application to the First Tier Tribunal where the terms and price can be decided.
If you and your landlord have agreed to extend your lease for a further 50 years or for a longer period, we are happy to help guide you through the process, from the beginning to the end.
For further information, please contact our Commercial team at MBH Solicitors:
http://www.wigansolicitors.com Tel: 01942 206060 Address: 26 Bridgeman Terrace, Wigan WN1 1TD.
Written by our Gemma Eastham, Commercial Property Solicitor