Cost of Lease Extensions - 19/01/2010
Many people who bought flats in the 1970’s and 1980’s on relatively short lease terms of 99 or 125 years may be in for a shock when it comes to the cost of extending their leases. Leaseholders have the right to extend their leases by 90 years, but the cost of doing so can jump dramatically once the expired term of the lease is less than 80 years.
One of the main reasons for the big jump in costs is that valuers must take into account the ‘marriage value’. This measures the potential increase in the value of the flat arising from the grant of a new lease. ‘Marriage value’ does not apply when the lease still has more than 80 years to run.
If you own a leasehold property which still has more than 80 years to run, you should look into how much it would cost you to obtain an extension on the lease term now. If you own a lease which has less than 80 years to run, you should still look into the cost of obtaining a lease extension as you will inevitably require this as and when you come to sell and/or mortgage your property.
Contact us if you would like to discuss.
Warcup Skene was formed in 2007 by Mark Warcup and Claire Skene. The firm offers a range of
services to private and business clients both nationally and in the local community. We are
responsive to our clients needs and our aim is to provide a quality personal service at a
price that is transparent and competitive.
Our qualified solicitors are expert in their chosen
fields and our support staff are knowledgeable and helpful. If you do not know where to turn to
for legal advice call us and we will always be prepared to give you some initial free advice on
the telephone with no obligation.
