Take advantage of the long days of lockdown to think about extending your Lease.
Ok not the most exciting thought, however it may well be something you have been thinking about for some time. The magic term length which you need to keep an eye on is 80 years.After that point the valuation calculation (extremely complicated) means that so-called marriage value is taken into account and can exponentially increase the premium you will need to pay your Freeholder to obtain the Lease extension.
As has been well publicised and most people know, Tenants who have owned their flat for at least 2 years are entitled to apply under legislation to extend their Lease to a total of the remaining years of the term plus an additional 90 years. The added advantage is that the ground rent, which in some cases is quite high, will be reduced to nothing (so-called peppercorn ground rent).
If you are thinking of doing this and need advice, or further information, see more details on our Lease Extension page call us on 020 8447 3277 or speak to John, Dan or Sara. We are members of the Association of Leasehold Enfranchisement Practitioners.