Want to extend your lease? We'll show you how to do it
Want to extend your lease but not sure how? We?ve produced a useful E-book to help you through the process.
A leasehold flat is what is known as a diminishing or ?wasting? asset. This means that over time, the market value of the property falls as the lease gets shorter. Once a leaseholder has 80 years or less remaining on their lease, they may find it has so little value on the open market that they are unable to sell it. But don't panic - luckily, the Leasehold Reform Housing and Urban Development Act 1993 gives all leaseholders who have owned their home for at least two years, the right to extend their lease.
Under the Act, you have the right to add 90 years to what is left on the existing lease at a ?peppercorn rent?. This means that no ground rent is paid. For example, if your lease has 70 years left to run, your new extended lease would be for 160 years.
Lease extensions can be complicated and there are certain rules that need to be followed in order to complete the process successfully. Using a professional firm to help you makes sense, so click here to take a look at Ringley?s step-by-step guide.
The E-book talks you through the process, explaining each step in detail. First, you will need to get a valuation so you can agree a price for the lease extension with your freeholder. The Leasehold Guidance Service is part of Ringley Chartered Surveyors, so one of our professionally qualified valuers can help, ensuring that you are able to settle on a fair price. Next, you will need to serve a notice on your freeholder, notifying them officially of your intention to extend your lease.
Then the deal must be negotiated and, again, if you can?t agree a price with the freeholder, we can help. Negotiations are carried out by a Ringley Director or an RICS-qualified surveyor and are charged at an hourly rate. If negotiations fail, we can take your case to the First Tier Tribunal for you.
Once you have settled on a price, our in-house legal department will then complete the legal work on your behalf.
So go online and take a look to find out more and then give us a call on
020 7267 2900 . Our friendly staff are here to help. And if you want to know more about lease extensions, the Leasehold Advisory Service also has plenty of useful information to help get you started.
Author : Mary-Anne Bowring
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