The Credit Crunch could produce a benefit for flat owners.
The Law Society of England and Wales is advising leasehold property owners to take advantage of lower property values and extend their leases.
Most leases run for 99 years, once they have less than 80 years left to run the cost of extending a lease increases significantly. *Once you have owned your property for over two years you have the right to extend your lease.
To extend your lease you need to agree a cost with your landlord, your property value is a significant facet when agreeing on the price.
Leaseholders should contact a solicitor who specialises in leasehold matters and look into extending their lease, as delaying the extension until property prices have risen and the term of the lease is still shorter – could prove to be substantially more expensive than if done at this time.
For flat owners looking to sell, lease extension may also be a benefit as flats and apartments with a shorter term may be more difficult to sell as lenders are more reluctant to lend to a buyer wishing to purchase a property with a short lease.
*there are instances where it may not be possible – your solicitor will be able to advise you further.
