Many banks consider 80 years a short term to have left on a long residential lease and they may not feel comfortable lending against such a property. This means that any buyer who is looking to buy the flat with the assistance of a mortgage may struggle to do so. In addition, the further the remaining term drops below 80 years, the more expensive it will be for a tenant to extend their lease.
Get expert advice on lease extension
Our expert leasehold enfranchisement solicitors are experienced in advising landlords and tenants on their right to acquire the freehold of properties.
Did you know:
- That if the length of term remaining on the long lease of your flat is less than 80 years it may prove difficult to sell?
- If you have owned your flat for two years or more, there is legislation that allows you to extend a residential lease for an additional 90 years upon the payment of a premium?
- Under the legislation you would be entitled to extend your lease on broadly the same terms as your existing lease?
- By exercising a right to a lease extension, you would reduce your ground rent to nil?
Many people are unaware of the fact that if the term of their residential lease is nearing 80 years or less that most banks would be unprepared to lend against the flat. This may mean that when you come to sell your flat you would find it difficult to find a buyer. There is, however, legislation which allows tenants to extend their residential lease by an additional 90 years (in addition to their remaining term), on broadly the same terms as their existing lease, with the reduction of their ground rent to nil upon the payment of a premium. This is known as a lease extension under the Leasehold Reform Housing and Urban Development Act 1993.
This is often a complex area that requires specialist legal skills and attention to detail. Our clients receive first-class legal and commercial expertise on all types of enfranchisement work.
We possess an in-depth knowledge of property acquisitions involving high-value London properties and estates, especially when advising on acquiring and extending a lease, joining in an enfranchisement claim or selling a property with the benefit of such claims.
We advise and support our clients on both contentious and non-contentious enfranchisement work. We advise both landlords and tenants of their rights in respect of applications to acquire the freehold of leasehold houses, lease extensions of both flats and houses and collective enfranchisement of blocks of flats.
In addition, we act for many residents’ associations and groups of tenants who wish to acquire collectively their freeholds whether by collective enfranchisement or voluntary purchase.
Our lawyers have significant experience in handling matters in the Leasehold Valuation Tribunal, Lands Tribunal, High Court and the Court of Appeal.
Members of our team are accredited by the Association of Leasehold Enfranchisement Practitioners (ALEP).