A lease is a diminishing asset. Long leases of flats and sometimes houses, for which a premium is paid, are usually granted for 99 or 125 years. When the remaining term falls below about 70 years concerns creep in about whether the property will provide adequate mortgage security in the medium term.
The tenant has a right to acquire an additional 90 years on the term, on the payment of an additional premium. If the premium cannot be agreed with the freeholder the tenant may serve a formal notice and if necessary have the issue decided by a tribunal.
Tenants should consider their position, and whether to negotiate or serve a notice, well in advance of putting their property on the market. If a sale is negotiated and the buyer then questions the length of the lease the tenant will at a disadvantage when raising the question with the landlord.
We are happy to deal with the technicalities of lease extensions including tribunal cases, for tenants or landlords.
20 West Street
T: 01795 5333337
We are open Monday to Friday 9.00 am to 5.30pm, Saturdays 9.30am to 12.30pm