Leaseholders should consider extending their lease now or risk seeing its value decline, warns Addison O’Hare in Walsall.
Addison O’Hare, 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.
Dixon Wilton, solicitor said: “It is difficult enough to sell in the current climate. Not extending your lease could make it even more difficult. There will be fewer buyers 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.”
Addison O’Hare 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.
Dixon Wilton, solicitor adds: “There are circumstances whereby extending the leasehold might not be possible. Involving a CQS accredited property solicitor such as Addison O’Hare as early as possible will help to advise on this and any other issues relating to your home.”
Addison O’Hare underwent a rigorous application and assessment by the national Law Society to become part of CQS initiative, which recognises high quality in residential conveyancing.
For any questions relating to this article please contact Dixon Wilton at Addison O’Hare on 01922 725515.
For more information on the Law Society's Conveyancing Quality Scheme visit www.lawsociety.org.uk/cqs
