Leaseholders warned to extend now or pay the price later.
Leaseholders should consider extending their lease now or risk seeing its value decline, warns property specialists, KBL Solicitors.
KBL Solicitors, 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 selling a property could prove more difficult.
Claire Dawson, property solicitor says: “It is difficult enough to sell in the current climate. Not extending your lease could make it even more difficult. Buyers may not be 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.”
Claire says that once a leaseholder has been in the property for two years they could have a right to extend the term, but that it might not be that straightforward.
“There are circumstances whereby extending the leasehold might not be possible. Involving a property solicitor as early as possible will help to advise on this and any other issues relating to your home.”
To help home buyers avoid legal pitfalls the Law Society has established the Conveyancing Quality Scheme, which recognises the high standards in residential property legal services that solicitors, like KBL, who specialise in conveyancing provide.