There are several very good reasons to think about getting a leasehold extension.
One of these might be that a longer lease will put up the value of the flat. Also anyone wishing to purchase it may find difficulties in securing a mortgage because many lenders are loathe to properties unless they have a long lease remaining- usually over 70 years. So anyone considering selling, whose flat has only a short lease left to run would be wise to seek a lease extension.
When dealing with lease extension the law can be quite complex. So it is best to use a specialist lease extension solicitor not only for advice, but also to continue negotiations with the freeholder. However, should someone decide to hire a solicitor or not, it is always a good idea to have some knowledge of the regulations governing lease extension.
The person seeking the extension should have owned the flat for at least two years and on a what is referred to as “long lease” – that is a lease which was originally granted for a minimum period of 21 years. Under the current regulations anyone seeking the extension does not actually have to be resident in the flat. It is possible to secure an extension for a short lease provided the leaseholder has the right of perpetual renewal. This will need to have been specifically stated in the original lease. Your lease extension solicitor will be able to investigate the matter in case of any doubt.
It can take up to six months for a lease extension to be completed. This will, of course be of little comfort to someone who already has a buyer for the flat and wants the sale to be completed quickly. In such cases the buyer can be given an assignment to the right of extension. This means the buyer will have the right to take over any lease extension once the sale is completed.
One of the main reasons for hiring a lease extension solicitor is to ensure negotiations with the freeholder go through smoothly. In such instances the lease extension may be secured in as short a period as two months.
As a dispassionate party the solicitor is hardly like to antagonise a difficult freeholder which would only stall discussions. While the law may be on the leaseholder’s side, there is little to be served by entering negotiations in a belligerent manner.
A skilled lease extension solicitor will ensure discussions go through as quickly as possible to the satisfaction of the client.