Flats and apartments (and some houses) have a leasehold legal title which only lasts for a certain number of years, unlike a freehold title which lasts indefinitely.
If a lease has around 80 years (or less) left remaining on it, a future buyer or mortgage lender will require the lease term to be extended, or you will find that you have to sell the property for a lot less than you could.
If the lease drops below 70 years, lenders may refuse to loan a mortgage for the property and you will reliant on finding a cash buyer.
Most people are not aware of the same.
Freeholders to blocks of leasehold flats purchase the freehold with a view to making as much money as possible. Particularly attractive to them are properties with short leases as they will be able to make money selling lease extensions to their leaseholders.
A lot of freeholders use the lack of knowledge of the owners of leasehold properties to make as much money as they can.
Eric can help!
1. Contact Eric with your property address
2. Let Eric know how much your property is worth (or at least how much you think it is worth)
3. Eric will confirm how long is left on the term of your lease
4. Eric will check who your freeholder is – he has dealt with most of them so knows their particular quirks and requirements
5. Eric will seek the professional advice from the specialist panel of surveyors he works with to have an approximate value given on what a lease extension will cost
6. You are given an estimate of the total cost of a lease extension including the likely premium for the lease extension, the legal costs of the freeholder, the surveyors costs for a full valuation and Eric’s legal fees. Some freeholders will not agree to grant a lease extension willingly so Eric will also let you know how you can go about forcing your freeholder to grant the same.
The cost of a lease extension could be several thousand pounds. So it’s important that you think about the length of the lease when you buy the property and understand the potential cost of extending it in the future.
Our team of dedicated experts can deal with all legal aspects of having your lease extended.