If you are considering whether to extend a lease or not you should talk with lease extension valuation surveyor who will help you to understand the intricacies of leasehold valuation for lease extension purposes and guide you through the complex process.
When you own the leasehold property it will always be on the fixed term. When this term expires your leasehold interest will diminish and the flat will revert back to the freehold.
The current legislation called Leasehold Reform, Housing and Urban Development Act 1993 allows to extend the lease for an additional 90 years on top of existing term with peppercorn ground rents, providing you meet the eligibility criteria and obtain lease extension valuation.
You may wish to consider extending your lease for the following reasons:
- Your lease is below 80 years and you want to extend the lease, before property loses more of its value.
- Your lease is above 80 years and you wish to extend the lease, before it runs below 80 years and makes your premium significantly more expensive.
- You are selling the property and wish to assign the right to extend the lease to your buyer.
- You have difficulties obtaining mortgage/remortgage due to a short lease.
- You want to extend the lease to remove any future ground rents.