Leaseholders warned to extend now or pay the price later
News article published on: 20th June 2012
Leaseholders should consider extending their lease now or risk seeing its value decline, warns Osbornes Solicitors, London
Osbornes, 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, marketing and selling a property could prove more difficult.
Guy Osborn, partner in the property department at Osbornes solicitors comments:
“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 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 been in the property for two years they may be eligible to extend the lease, however there is a set of criteria to meet. The property law team at Osbornes will be happy to go through these with you and advice you on whether you are eligible to initiate the lease extension process.
How much will a lease extension cost?
For an estimate of what extending your lease might cost you, please visit Osbornes solicitors lease extension calculator website
Why choose Osbornes
Osbornes underwent a rigorous application and assessment by the national Law Society to become part of CQS initiative, which recognises high quality in residential conveyancing. CQS has the support of the Council of Mortgage Lenders, the Building Societies Association, Legal Ombudsman and the Association of British Insurers.
If you have any questions regarding the above or would like advice on any other property issue please contact Justine by: