What is a leasehold extension?

A leasehold extension is the process of extending the lease term of a property held on a leasehold basis. It helps maintain the property's value and desirability. Leasehold extension legislation allows leaseholders to extend their lease, ensuring the property remains attractive for sale or mortgage purposes.

How long is a leasehold extension ?

The length of a leasehold extension can vary depending on the jurisdiction and specific circumstances. In some countries, such as the United Kingdom, leasehold extensions are typically granted for an additional 90 years beyond the remaining term of the existing lease. However, it's important to note that leasehold extension regulations can differ, and it's advisable to consult local laws or seek professional advice like leasehold valuations for accurate information regarding leasehold extensions in a specific jurisdiction.

What are the benefits of lease extension ?

Extending the leasehold of a property offers benefits such as increased property value, improved marketability, easier access to mortgage financing, peace of mind and security, the avoidance of escalating costs, and more control over property management.

What happens to leasehold property after 99 years ?

After 99 years, the leasehold property typically reverts back to the freeholder, unless the lease is extended by the leaseholder. The ownership of the property, along with the land it is built on, returns to the freeholder once the lease expires. As a lease approaches its expiration, the property’s value may decrease, making it more challenging to sell or mortgage. It is advisable for leaseholders to consider extending their lease well before it reaches the 99-year mark to maintain the property’s value and their ownership rights.

Why choose leasehold Valuations for Lease extension or Buying Freehold ?

1. Fair Price: A leasehold valuation ensures you pay a fair price for a lease extension or freehold purchase.2. Increased Property Value: Extending the lease or buying the freehold can potentially increase your property’s value.3. Cost Savings: Accurate valuation helps minimise future costs like ground rent.4. Stronger Negotiation: A valuation report strengthens your position during negotiations with landlords.5. Legal Compliance: Valuations ensure you meet legal requirements for lease extensions or freehold purchases.6. Future Planning: Valuations help you plan for selling or passing on the property to future generations.7. Expert Advice: Engaging a valuer provides access to their expertise and guidance.8. Mortgage Support: Valuation reports improve your mortgage opportunities for lease extensions or freehold purchases.

How much does it cost to renew a leasehold ?

The cost of renewing a leasehold in the UK can vary depending on various factors, such as the property value, the length of the renewal term, and any negotiations between the leaseholder and the freeholder. Unlike extending a lease, which typically involves paying a premium to the freeholder, renewing a lease generally involves paying a nominal fee known as a “peppercorn rent” or a small percentage of the property value.The exact cost of renewing a leasehold will depend on the specific terms agreed upon between the parties involved. It is advisable to consult with a solicitor or a licenced conveyancer who specialises in leasehold matters to get an accurate estimate of the costs involved based on your particular situation.

Q. How much does it cost to extend a leasehold in uk ?

The cost of extending a leasehold in the UK can range from a few thousand pounds to tens of thousands of pounds, depending on factors such as the remaining lease length, property value, and negotiated terms with the freeholder. Additional costs include legal fees, valuation fees, and disbursements such as Land Registry fees. It’s recommended to seek professional advice for an accurate estimate based on your specific situation.

Who Owns the Land Under a Flying Freehold?

May 10, 2024

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The term “flying freehold” refers to a scenario in property law where a portion of one property extends over or under another adjoining property. This often prompts inquiries regarding the ownership of the land beneath the suspended portion.

Understanding the Flying Freehold

A flying freehold arises when a section of one property encroaches upon the airspace of an adjacent property or is supported by it. Despite its unconventional terminology, the legal implications are firmly rooted in practical considerations of property rights and responsibilities.

Who Owns the Land?

In cases of a flying freehold, the land underneath the overhanging portion typically remains the property of the owner of the originating property. However, this does not confer unrestricted access or control over the neighbouring property. Legal agreements, such as licences or leases, may be necessary to address issues of access, support, and maintenance.

Navigating Complexity

While the concept of a flying freehold may seem straightforward, its practical implications can be complex. Disputes may arise regarding maintenance obligations, access rights, and alterations to the flying portion, requiring legal resolution and clarification.

Our Solution: Expert Guidance and Resources

Whether you are grappling with challenges related to a flying freehold or considering options for lease extension or freehold purchase, our team of Chartered Surveyors is equipped to provide expert guidance and support.

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Unlock Your Property’s Potential

For those seeking to calculate their lease extension premium, our complimentary online Lease Extension Calculator Tool offers immediate estimates, facilitating informed decision-making about the future of your property.

Unlock the full potential of your property with expert guidance from our team of Chartered Surveyors. Your property journey begins here.