Leasehold properties whether it be a flat, maisonette, house or a bungalow can be a problem for many home owners especially if they plan to sell, re-mortgage or go for equity release.
As the lease runs down it can stop or delay you selling if the number of years left are too short for a purchaser to obtain a mortgage and in recent years the main lenders have become ever more choosy about providing mortgages on leasehold property.
If you are getting on in years it can be a costly problem for relatives to have to deal with after you have gone and the general rule is that the shorter the lease the higher the price.
Provided you have owned the property for more than 2 years or if dealing with a deceased estate provided the deceased had owned the house more than 2 years then you probably have the right to buy the freehold or extend the lease and this is a great advantage to you provided you know how to use the leasehold reform legislation and also how to deal with a freeholder who might not be so keen for you to take his freehold off him or to allow you to extend your lease.
Note that if you qualify the freeholder cannot refuse to sell to you.
In other words you have the right of compulsory purchase but you may have to jump over a few hurdles to get there which is why we believe you need specialist help.
With houses or bungalows we usually never advise people to extend their lease - just go for the freehold every time. It makes most sense. Be rid of your lease once and for all AND add value to your home at the same time!
With flats and maisonettes we advise clients to have 90 years added on to the end of the current lease paying a peppercorn ground rent - if demanded. Be wary of freeholders who want to sell you a new lease with regular increases in their ground rent.
Leasehold property has been in the news and not for good reason as people in Ellesmere Port have houses they cannot sell! They have leases which contain ground rents that increase over time!
Government plans to alter the law to make things simpler and easier and cheaper are in the pipeline.
Anthony Brunt & Co can help you because we have more than 30 years experience in this specialised field of valuation and negotiation coupled with tribunal experience.
Anthony has been involved in public consultation with the Law Commission over proposals to introduce a simpler, easier, quicker and cheaper solution to the current system.