Extension Of Long Lease
A Lease of a house or flat is a depreciating asset.
Leasehold properties by nature are depreciating assets and as the term of a Lease decreases, the value of the lease diminishes. Negotiating a lease extension is the way in which tenants can extend their leases and add value to their properties. Tenants have Statutory rights to do this provided certain criteria are met and we would advise the owner any leasehold house or flat with an unexpired term of less than ninety years to take advantage of these rights. You can also get rid of onerous ground rent when extending your lease.
Many mortgage lenders are reluctant to lend against a lease with a term of less than ninety years. This could be a critical factor when it comes to a potential sale: prospective purchasers might not be able to find a willing lender. For you to have access to the best mortgage deals, or for a buyer to get the right deal to purchase, a longer lease is increasingly needed.
There are two alternative lease extension routes; voluntary or statutory.
A voluntary lease extension simply involves you and your landlord agreeing to a new lease between yourselves. This is usually quicker than a statutory lease extension.
If you have owned a leasehold flat for at least two years, you have a statutory right to extend the lease. You can use this right to make a statutory lease extension if a voluntary lease extension isn’t possible, or if the landlord isn’t offering you fair terms. A notice is served on the Landlord with your terms. In return, your landlord will have two months to either accept your offer or suggest a counteroffer. You and your landlord will then have up to six months to agree on the premium and the terms of the new lease.
Our team solicitors can advise what type of lease extension is best for you and guide you through the processes from start to finish.
Acted for high-net-worth clients on property transactions in London.
Advised investors on purchase and disposal of their property portfolios.
Advised on commercial lease transactions including acquisition and disposal of shops, restaurants, and offices.
Advised clients on acquisition of a hotel, part of a franchise at West End.