Leases & Leasehold Extensions
Leasehold properties are a diminishing asset, and extending your lease provides long term security of tenure and allows you to benefit fully from any future rise in your property's value.
Existing legislation enables you to extend your lease by 90 years on top of the years you have remaining, and at the same time your annual ground rent will be reduced to a peppercorn. Remember, the shorter your lease gets, the less valuable it becomes, and the more it will cost to purchase the extension. 80 years is the crucial point: once your lease runs below 80 years, even by a single day, the price to extend the lease rises significantly.
At John D Wood & Co. we have been helping leaseholders extend their leases since the inception of the legislation. If you own or wish to buy a leasehold property, we can advise you how much it may cost to extend your lease, as well as negotiate the price you pay - however, you will need to make sure you qualify first. The legislation says the lease must have been granted for over 21 years at its start date, and you must have owned the lease for over 2 years, in order to qualify for a lease extension. Should your landlord be uncooperative, or agreement of the lease extension premium not reached, the matter may be referred to the Leasehold Valuation Tribunal, where we will be able to represent you as an expert witness.