In his latest Coffee Break Briefing webinar, Frettens’ own Insolvency Guru Malcolm Niekirk looked at dealing with solvent liquidations with no tax clearance.
This is the summary of that briefing.
Niki Adkins is a Leasehold Specialist at Frettens who helps clients to extend their lease on their apartment or to buy the freehold. She has put together this Q&A as a starting point for any property owners who are considering this.
Q. What Is A Lease Extension?
A. As a lease gets shorter, it becomes less valuable and less appealing to potential purchasers and their mortgage lenders. An extension will increase the length of a lease. If you have owned your flat for at least 2 years, you have a statutory right to extend your lease by 90 years and to reduce your ground rent to nil. This only applies to residential property, not commercial.
Q. Will a Lease Extension increase the value of my flat?
A. In almost every case the answer to this is yes, a lease extension will increase the value of a flat or apartment.
Q. Will a Lease Extension make my flat easier to sell?
A. Yes it should make the property easier to see because buyers may be put off if there are fewer than 99 years remaining on a lease. Also, mortgage lenders may be reluctant to lend money against a property with a lease that is below 80 years, so this may severely limit the interest in buying your flat as you would be restricted to cash buyers only.
Q. Will a Lease Extension offer increased security?
A. Yes. Your tenure will be secured for the extended term of years.
If the lease on the property you own is less than 100 years, please consider extending the lease as the sooner you do it, the cheaper it will be. If you would like to understand what will be involved or have any questions, you only have to ask us at Frettens. Please call 01202 499255 and Niki or her team, will be happy to speak with you about your lease and your particular requirements.
Our Lease Extension specialists, based in Christchurch, also cover Bournemouth, Poole, the New Forest and anywhere else in the country. You can read more and download information from our lease extension pages.
