The length of some residential leases can be a point of concern. Mortgage lenders are becoming reluctant to lend on shorter leases and estate agents don’t always know about the complexities involved in obtaining a lease extension.
We are experts in this area of property valuation, and want to help you understand how buying or selling leasehold property makes a difference to your transaction.
What do ‘leasehold’ and ‘freehold’ mean?
‘Freehold’ is defined as absolute ownership, whereas ‘leasehold’ is the right to occupy a property for a set period of time. When you purchase a ‘leasehold’, you are buying the right to live in the property for a specified period. For more information, see our Jargon Buster.
This is why as a lease gets shorter, its value can decrease. Fortunately, leaseholders who have owned their property for more than 2 years have certain rights and are able to preserve the value of their asset.
What will a lease extension cost?
We can let you know what a ‘statutory’ lease extension would cost for your property. That is, an extension of 90 additional years without a ground rent.
Want to know a ‘ballpark’ figure?
Don’t forget to try our Lease Extension Calculator to get a ‘ballpark’ figure of what your lease extension might cost.
Any other questions?
Call us free today for expert advice and a simple explanation of the lease extension process.