The need for your lease extension arises because as your lease gets shorter the value of your flat (or maisonette) will go down compared to a similar flat which has a long lease of, say, 100 years or more. This reduction in value is much less pronounced in the early years, but it’s when your lease gets to less than 80 years remaining that the real problems start.
At this point the flat’s value really starts reducing, and it steadily becomes less saleable. This is because the cost of purchasing a lease extension becomes significant and continues to rise, the flat will have less appeal to buyers, and mortgage lenders are increasingly unwilling to lend on flats with short leases.
By extending your lease you reverse this reduction in value and the flat will become marketable once again and will be far more likely to fetch its true market value.
As your lease gets shorter the value of your house will go down compared to a similar house which has a long lease of, say, 100 years or more.
This reduction in value is much less pronounced in the early years, but it’s when your lease gets to less than 80 years remaining that the real problems start.
At this point the house’s value really starts reducing, and it steadily becomes less saleable. This is because the cost of purchasing the freehold becomes significant and continues to rise, the house will have less appeal to buyers, and mortgage lenders are increasingly unwilling to lend on houses with short leases.
If you buy your freehold you reverse this reduction in value and the house will become marketable once again and will be far more likely to fetch its true market value.
Our Services
We provide advice to individual lessees, Residents’ Associations and lessees’ Management Companies, and explain the benefits of extending your lease or buying your freehold.
Advice is also offered on block management, service charge issues, and the roles of the managing agent and the First-tier Property Tribunal.
Flat Owners
We can help you with individual Lease Extensions, Collective Enfranchisement (or Block Enfranchisement), including cases where the Freeholder offers you the Right of First Refusal, Block management, service charges and the Right To Manage.
House Owners
We can explain the advantages and cost of Freehold Purchase (or Enfranchisement) as against the right to have an extended lease.
Property Management
We can carry out Block management, as well as assist you if you have service charge issues, and also explain the Right to Manage process.
So if you live in a flat or house and are concerned about what living in a leasehold property may mean to you, or you are considering buying your freehold or extending your lease, then just call us for friendly, professional advice. We are happy to discuss the matter with you in our offices in Harborne, or in the comfort of your own home if you prefer, at a time and day to suit you.
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