Living In A Leasehold House - The Leasehold Extension Option
Leaseholders who live in ordinary residential properties need to consider the benefits and the importance of extending just as much as those people living in flats and/or apartments. This article looks at why these leaseholders ought to consider an extension just as if they were living in a flat.
To begin with, it should be know that leaseholders are often advised to buy their freehold rather than apply for a leasehold extension. Indeed, for many people this will be the more attractive option, since it ultimately gives them complete ownership of the property itself, as well as the right to occupy it. It's also worth pursuing if the house is on such a long lease that the original freeholder can no longer be traced. However, acquiring the freehold may be impractical, restricted by the terms of the lease, or prohibitively expensive. In any event, it's vital to obtain professional legal advice before embarking on this course of action.
If you are unable to purchase the freehold, then you should be thinking about extending your lease. Properties which are awarded on a short lease are not as appealing. Most buyers and mortgage companies are unwilling to take them on, which has obvious implications for selling and valuing the property. There's also the risk of the lease expiring whilst still in residence. If this takes place then the interest in the property reverts back to the freeholder and the leaseholder becomes an ordinary tenant in their own home.
Generally speaking, most householders who have owned their lease for at least two years have the right to apply for a leasehold extension. This is not always the case as unfortunately if your original lease was granted for less than 21 years and/or you have entended already, you are not able to get an extension. Exceptions may also apply to individual properties with special circumstances of ownership, such as charitable or Crown ownership.
The main rule for extending leases on houses is the same as that for leasehold extension on a flat - get specialist legal advice. A specialist solicitor will be able to correctly interpret the existing terms of the lease, negotiate with the freeholder and serve the appropriate notices. Leasehold extension isn't difficult as such, but it can take dedication and expertise. As with most things, you cannot get the same benefit without working with professionals.
About the Author
Bonallack & Bishop are lawyers specialising in leasehold extension (http://www.extendingalease.co.uk ). If you want more information on extending leases, then contact one of their solicitors today. Senior Partner Tim Bishop is responsible for all major strategic decisions. The firm has grown by 1000% in 13 years and Tim sees himself as a businessman who owns a law firm.
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