Leaseholders should consider extending their lease now or risk seeing its value decline.
Gotelee Solicitors, which is one of the national Law Society’s Conveyancing Quality Scheme members, says a longer lease will maintain a property’s value and therefore make it easier to sell or remortgage. With many lenders reluctant to lend on leasehold properties with less than 70 years left selling a property could prove more difficult.
Oliver Ray a property solicitor at Gotelee said: “It is difficult enough to sell in the current climate. Not extending your lease could make it even more difficult. There will be fewer buyers able to secure a mortgage for a leasehold with fewer years left on it, plus the value will be much lower.
“Another factor to consider is when to extend. Most leases run for 125 or 99 years, but once they have less than about 80 years left to run the cost of buying a lease extension increases significantly.”
Once a leaseholder has owned a property for two years they could have a right to extend the term, but that it might not be that straightforward.
Oliver Ray adds: “There are circumstances whereby extending the leasehold might not be possible. Involving a CQS accredited property solicitor such as Gotelee as early as possible will help to advise on this and any other issues relating to your home.”
Gotelee underwent a rigorous application and assessment by the national Law Society to become part of CQS initiative, which recognises high quality in residential conveyancing.
If you have any questions relating to issues raised in this article or any other property queries, please contact Oliver Ray on 01473 298110.