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Freehold Interest / Lease extension
If you own a leasehold property, you are the owner for a fixed period of time, not indefinitely. The agreement with the Landlord is called a “Lease” and this will set out how long you own the property.
This area of leasehold enfranchisement has been amended and expanded since its introduction in 1967.
If you own a house which is leasehold the tenant may have the right to buy the freehold of their property, as well as the right to extend the lease. In most cases, owners of a leasehold house will have the right to buy the freehold if they have owned the Lease for two years prior to making an application.
The term of Leases vary. In Leasehold houses, in the UK they can run as long as 999 years or perhaps longer. In respect of Leases for flats and apartments, a typical lease term can last between 99 and 125 years.
In recent times issues have arisen with regards to the remaining term of the Lease.It has been suggested that if you have a term of fewer than 80 years , this could pose the following problems:-
- Complications when you come to sell the property, as potential buyers may be put off.
- Complications when it comes to mortgaging/ remortgaging the property.
- The Property is likely to fall in value as the Lease grows shorter
Furthermore in addition to the term of the lease remaining an issue may arise with regards to the amount of Ground rent that is paid and whether it is escalating or not.
Fortunately, Leaseholders have rights as we have mentioned above that enable them to purchase the freehold or obtain a lease extension
Regardless of your situation, a number of criteria will need to be met before a purchase or lease extension can be granted, relating to both the Leaseholder and the property itself.
We are pleased to confirm that we can guide you through the process to ensure you are fully aware of your rights and assist in any necessary negotiations with your Landlord.
For more information please consult us your lease extension experts.