Why do I have to extend my lease?

A lease is a right to use “rent” the property for a set period of time. As your lease gets shorter the value of the Lease, and your home decreases and it becomes more expensive to extend the lease.

As the length of the unexpired term of a lease gets shorter, the premium payable to your landlord to extend the lease increases. If a lease has less than 80 years unexpired then marriage value is payable to the landlord could be significant.

A lessee may encounter difficulties if they want to sell their flat if the unexpired term is considered unmortgagable.  Different lenders have different criteria but generally require an unexpired term of at least 70 years.

Another way of obtaining a long lease is to collaborate with other flat owners in the building to exercise the right to collective enfranchisement.  Once the freehold has been acquired an extended lease (usually 999 years) will generally be granted to the participants