Property

Purchasing a leasehold property is usually more complex than purchasing a freehold as there are enquiries which need to be answered by the owner of the freehold and there may be service charge and insurance issues to deal with too. But purchasing a leasehold property is just the tip of the iceberg!

Most flats (and some houses) are leasehold properties. In reality this means that there is a lease, usually for 99 or 125 years from its starting date and you have to pay a ground rent to a freeholder. 

As the length remaining on the lease reduces, the value of the lease is affected, This impact is minimal at first but once there are fewer than 60 years left to run on the lease, the value can be significantly affected.

Leases of residential property are fine if they are relatively new - after all, 99 years won't run out within your lifetime so it can seem irrelevant that without intervention the lease will one day expire. However, what if you buy a flat with only 60 or 70 years left to run - most mortgage lenders won't lend on a lease that has less than 60 years and in many cases they require a minimum of 70 years. Can you extend the term and if so how do you extend the term of the lease? 

Our property team are experienced in dealing with leasehold transactions and can advise you on your rights as a leaseholder which include:

The Right to Extend your Lease

The Right to purchase the Freehold

The Right to Manage your Property

For further information, please contact our Property Team.