What is a leasehold extension?

A leasehold extension is the process of extending the lease term of a property held on a leasehold basis. It helps maintain the property's value and desirability. Leasehold extension legislation allows leaseholders to extend their lease, ensuring the property remains attractive for sale or mortgage purposes.

How long is a leasehold extension ?

The length of a leasehold extension can vary depending on the jurisdiction and specific circumstances. In some countries, such as the United Kingdom, leasehold extensions are typically granted for an additional 90 years beyond the remaining term of the existing lease. However, it's important to note that leasehold extension regulations can differ, and it's advisable to consult local laws or seek professional advice like leasehold valuations for accurate information regarding leasehold extensions in a specific jurisdiction.

What are the benefits of lease extension ?

Extending the leasehold of a property offers benefits such as increased property value, improved marketability, easier access to mortgage financing, peace of mind and security, the avoidance of escalating costs, and more control over property management.

What happens to leasehold property after 99 years ?

After 99 years, the leasehold property typically reverts back to the freeholder, unless the lease is extended by the leaseholder. The ownership of the property, along with the land it is built on, returns to the freeholder once the lease expires. As a lease approaches its expiration, the property’s value may decrease, making it more challenging to sell or mortgage. It is advisable for leaseholders to consider extending their lease well before it reaches the 99-year mark to maintain the property’s value and their ownership rights.

Why choose leasehold Valuations for Lease extension or Buying Freehold ?

1. Fair Price: A leasehold valuation ensures you pay a fair price for a lease extension or freehold purchase.2. Increased Property Value: Extending the lease or buying the freehold can potentially increase your property’s value.3. Cost Savings: Accurate valuation helps minimise future costs like ground rent.4. Stronger Negotiation: A valuation report strengthens your position during negotiations with landlords.5. Legal Compliance: Valuations ensure you meet legal requirements for lease extensions or freehold purchases.6. Future Planning: Valuations help you plan for selling or passing on the property to future generations.7. Expert Advice: Engaging a valuer provides access to their expertise and guidance.8. Mortgage Support: Valuation reports improve your mortgage opportunities for lease extensions or freehold purchases.

How much does it cost to renew a leasehold ?

The cost of renewing a leasehold in the UK can vary depending on various factors, such as the property value, the length of the renewal term, and any negotiations between the leaseholder and the freeholder. Unlike extending a lease, which typically involves paying a premium to the freeholder, renewing a lease generally involves paying a nominal fee known as a “peppercorn rent” or a small percentage of the property value.The exact cost of renewing a leasehold will depend on the specific terms agreed upon between the parties involved. It is advisable to consult with a solicitor or a licenced conveyancer who specialises in leasehold matters to get an accurate estimate of the costs involved based on your particular situation.

Q. How much does it cost to extend a leasehold in uk ?

The cost of extending a leasehold in the UK can range from a few thousand pounds to tens of thousands of pounds, depending on factors such as the remaining lease length, property value, and negotiated terms with the freeholder. Additional costs include legal fees, valuation fees, and disbursements such as Land Registry fees. It’s recommended to seek professional advice for an accurate estimate based on your specific situation.

Common Leasehold Disputes and How to Resolve Them

October 10, 2023

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Leasehold living comes with its own unique set of joys and challenges. While it offers a convenient way to own a property, it also entails shared responsibilities and the potential for disputes. In this blog, we’ll explore some common leasehold disputes and provide guidance on how to resolve them.

Service Charge Disputes

Issue: Service charges are a frequent source of contention in leasehold properties. Leaseholders may dispute the amount or question how the funds are used for maintenance, repairs, and communal services.

Resolution: To resolve service charge disputes, follow these steps:

Review the Lease Agreement: Start by carefully reviewing your lease agreement to understand your obligations and the services covered by the charges.

Seek Transparency: Request a detailed breakdown of the service charges from your landlord or managing agent to ensure clarity and transparency.

Mediation: If disputes persist, consider mediation or alternative dispute resolution (ADR) services to find an amicable solution.

Leasehold Valuation Tribunal (LVT): In cases where the resolution is challenging, you can apply to the LVT (now known as the First-tier Tribunal – Property Chamber) for an independent assessment of the service charges.

Repair and Maintenance Disputes

Issue: Disagreements can arise over the responsibility for repairs and maintenance of the property, particularly in communal areas or shared facilities.

Resolution: To resolve repair and maintenance disputes:

Refer to the Lease Agreement: Consult your lease agreement to determine the respective responsibilities of leaseholders and the landlord.

Communication: Open a line of communication with your landlord or managing agent to address the issue and seek a resolution.

Expert Advice: If needed, consider seeking advice from a property expert or surveyor to assess the extent of the problem and provide recommendations.

Legal Action: As a last resort, you may need to consider legal action through the courts if disputes remain unresolved.

Neighbour Disputes

Issue: Noise complaints, boundary disputes, and disagreements with neighbours over shared facilities or common areas can lead to tense situations.

Resolution: To address neighbour disputes:

Communication: Start by discussing the issue with your neighbour in a polite and non-confrontational manner. Often, open communication can resolve minor disputes.

Mediation: Consider mediation or involving a third party to mediate the discussion if direct communication fails.

Community Guidelines: If applicable, refer to any community guidelines or rules set out in the lease agreement.

Legal Action: In extreme cases, legal action may be necessary, but it should be a last resort.

Lease Extension and Enfranchisement Disputes

Issue: Disagreements may arise between leaseholders and landlords or between leaseholders themselves regarding lease extensions or collective enfranchisement (buying the freehold).

Resolution: To address lease extension and enfranchisement disputes:

Legal Advice: Seek legal advice from a property expert or leasehold surveyor who specialises in leasehold matters.

Mediation: Consider mediation to facilitate negotiations and reach an agreement that benefits all parties.

Leasehold Valuation Tribunal (LVT): In some cases, you may need to involve the LVT (First-tier Tribunal – Property Chamber) for a fair valuation and resolution.

Remember that open communication, a clear understanding of your lease agreement, and a willingness to seek expert advice or mediation from leasehold valuations can often lead to successful resolutions for leasehold disputes. Additionally, keeping records of all communication related to the dispute can be valuable in case legal action becomes necessary.