When you purchase a leasehold property, you are buying the right to live in that property for a certain period of time. For example with some modern leases, you can purchase properties with 99 to 125 years lease terms or with certain household leases they can be up to 999 years.
The main thing to consider is as a lease term gets shorter the value of the lease drops and it becomes more expensive to extend the term. When thinking of selling a leasehold property, you should note that mortgage lenders often have a minimum requirement of the length left on a lease. Therefore, it is the best solution to extend the term of the lease before you sell your property as it will also affect your sale value significantly.
As a buyer, similarly you will want to check the remainder of the lease term on a property before considering whether it is a secure investment or not.
Once you are the registered owner of the property for at least to two years, you have the right to request your lease to be extended. Lease extentions can be complex and it is therefore essential that you consult the right people to ensure it is handled correctly and efficiently. At Versus Law we have people well equipped to deal with such matters and can ensure everything goes smoothly for you during this process. Get in touch now and speak to a member of our conveyancing staff on 0161 249 5087.