A government report stating that several million leasehold properties require a lease extension comes as no surprise, considering that nearly 40% of sale properties valued at less than £500,000 have leases of fewer than 80 years.
If you are a current or soon-to-be leaseholder with a property on the market, extending your lease is worth serious consideration. According to most experts, and contrary to popular belief, less than 5 per cent of UK lease extension cases go as far as the Leasehold Valuation Tribunal.
Nevertheless, a short lease can adversely affect the saleability of your property and with the high proportion of properties under £500,000 with less than 80 years remaining, property purchasers are also disadvantaged. In recent months, many lenders have amended their policies in favour of long leases and increased the requisite number of years remaining on a lease, for properties they are prepared to lend against. At least one lender has stopped lending on any short lease. This trend of goalpost moving has led to mounting concern amongst mortgage brokers, conveyancing solicitors and leaseholders alike.
Having said that, there is still no time like the present to acquire a lease extension, with property prices remain depressed and without any serious hope of an upward turn in the property market on the horizon.
Equally, if you find yourself in the unfortunate position of facing a leasehold valuation tribunal, with our team of specialist property lawyers behind you, you can rest easy in the knowledge that most tribunals are amicable and smoothly dealt with. Do not leave the marketability of your property to luck – get in touch with one of our lease extension experts on 01722 422300 today – extend your lease and remain in control.