Rights to Extend Lease – Information for Leaseholders
At the beginning of this year, the UK government has announced that it has planned to proceed with regulations providing the validation to leaseholders to extend their flat or residential lease by 990 years at ground rent. This plan has been suggested for flats, houses, and authoritative estimates. It would be convenient for many leaseholders in the country(UK). Mostly there is more number of flats and apartments in the UK compared to houses. Having recently come into existence, the legislation states that the leaseholders can extend their house or flat lease only once for 50 years with ground rent. This implies to the leaseholders who can extend their flat leases as frequently as they want to at zero or negligible ground rent for 90 years.
Owners of a leasehold property will accept the new legislation proposal but they have to continue as experts with the changes strictly notified by legislation which will be complex. The leasehold law is already prohibited by the newly constructed house and is not at all followed by Scotland natives. The legislation last year suggested that the leasehold should be replaced with commonhold tenure(new homes), whereas the ownership of the land and the building should be also provided to the householder of the shared home.
Can you refuse to extend the lease?
The lease extension depends upon the time, the period from when you’re staying to the property, or how long you owned it. If you have stuck to the residency for 2 years or more, then you will have a legal(statutory) right to extend the lease of your flat under the Leasehold Reform Housing and Urban Development Act 1993. But if you are staying with the resident for less than 2 years then the freeholder has the right to refuse the lease extension. It could be managed by having a lease extension negotiation with the freeholder by paying them more than it cost, which terms of an informal lease extension. In a nutshell the informal process, the freeholder can refuse but in the statutory process, they cannot refuse. So the statutory process can be preferred.
When should you Extend your Lease?
Before extending your property lease you need to figure out whether it is the right time to extend or not. It would be appealing to extend the flat lease if the lease is less than 90 years. If the property leases are below 80 years then it will be no more valuable to extend. Short-term leases(below 80 years) can not be sold easily as the value decreases significantly. However, as the lease sinks below 80 years, the freeholder will add value to the collective value for a particular property. That is termed as a marriage value on a lease. At present, the landlords or the buyers of the property are more worried about the lease length and the property condition. In short the shorter the lease the more will be the lease extension cost. Hence do not be in a hurry for extending your lease. Keep in mind that with an increase in the property cost there will be also an increase in the premium cost.
Do I need a Solicitor to Extend my Lease?
If you need advice, a straight path towards lease extension or home valuation then you need a Chartered surveyor. They can guide you in taking the correct step when you are facing issues like noisy neighbors, ground rent distress, wily landlord, and more. An expert lease surveyor could help you from the initial stage of valuations till the approval stage of your home lease or enfranchisement process. They will also guide you to the estimated accurate lease extension cost. Eventually, a solicitor can help you in many different ways including home valuations, lease extensions, enfranchisement, surveying, consulting, and more.
Are freeholders obliged to extend leases?
If you’re the owner of a leasehold house and do not have a freehold share on it then you do not own the house. You’re just living on rent in the leasehold flat. As well when the lease of your flat seizes down to zero then you do not have the right to stay in it, you do not own that flat. The ownership will get back to the freeholder. Hence, extend your lease before the lease gets down to zero by compensating the freeholder. In legal terms, you have the right to keep an opinion for the lease extension cost with a valid reason to the freeholder. But the freeholder may not be pleased with it and would have high expectations for lease extension cost. This is the term where freeholders are unreasonable and disproportionate. They would also disregard the leaseholder and would delay in deciding on it, in the six-month duration of lease negotiation. They behave like this because they know that the leaseholders will have no option and have to pay the additional cost also, but you rather stick to your cost which you’ve solicitor proposed to you and contact the neighbors and start a group negotiation with the freeholder and extend your lease accordingly.
You can also go through the formal way, and ask the freeholder to remove the additional cost as the freeholder does not have a legal right to add norms into the lease cost. You must be better prepared and get the full of your knowledge and update with the new terms and regulations which have recently come into the UK legislation firm. So that the freeholder would not act inappropriately with you and if they do that then you should have answers to it. Leasehold Valuations can provide you with the best lease extension and enfranchisement advice and can guide you to the whole of it. You can contact us, to schedule your free 10-minute consultation or can call us at 01753542984.