A lease is granted to a leaseholder by a freeholder for a specific number of years. At the end of that time, the lease ends and full ownership of the property goes back to the freeholder. A lease extension increases the length of the original term of the lease, and postpones the date when the freeholder takes back possession.
As the term of your lease drops below 99 years, the value of your property may start to decrease. Once the lease drops below the 80-year mark, it decreases in value faster and you may have problems selling your property, or obtaining a mortgage on it.
Many mortgage lenders are requesting a minimum term of 70 years remaining at the end of the mortgage term – therefore, extending the lease is imperative when dealing with properties built in the 1960s and 1970s.
To find out more about lease extensions, contact a member of our lettings team on 01494 685518.