![]() ![]() ![]() To exercise this right, a formal process must be used that requires you to serve a specific notice on your landlord. You have the legal right to a lease extension once you have owned the property for two years. Marriage value is the increase in the value of the flat arising from the grant of the new lease. When the term of a lease drops below 80 years, the cost to extend it increases because ‘ marriage value’ becomes payable. A lease extension is particularly important if the lease has less than 80 years remaining, as it is more expensive to extend. If you are considering a leasehold flat with a term of less than 99 years, you should think about extending it. If you are to continue living in the property you are likely to have to pay market rent. If the lease term comes to an end you have certain rights if you live in the property. The value of a leasehold flat reduces as the term of the lease gets shorter. If the property has a short lease it might also be difficult to get a mortgage, as the property is less attractive to mortgage lenders. ![]() The remaining years left of the lease are known as the ‘term of the lease’ and this is significant, as a shorter lease can impact the value of the property and increase the price of extending it. If you are looking to buy a leasehold flat it is important that you know how many years remain on the lease. Are there any restrictions on how you live in and use the property?.Are there any ‘ administration charges’?.Is there any major work scheduled for the building?.Is there a ‘ sinking fund’ or ‘ reserve fund’?. ![]()
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