How to get obtain extentions
In the majority of cases, when you make the decision to purchase an apartment, you are taking on a lease agreement. However, there are many cases when purchasing an apartment also includes purchasing a share in the Freehold Company.
When Lease Agreements are initially written, they can have a shelf life of anything between 99 years and 999 years. Generally speaking though, the most common leasehold agreement is initially written providing a shelf life of 125 years.
If you sell your property you are in fact “assigning” the remaining years left on the lease to the new owner. If you purchased a lease of 120 years on your apartment and decided after 10 years for example that you wanted to move and buy another property then the remaining life of the lease will be reduced to 110years.
It is sensible when buying a lease hold property, to check the number of years remaining on the lease. Our experience has shown us that mortgage lenders are less likely to offer loans against a property with less than 80 years remaining. In cases where there is a 80 or less years left on the Lease, it would be sensible if the vendor has commenced the process of obtaining a lease extension from the Freeholder, since this will certainly become a point of negotiation during the potential sale of the property.
All applications must be made to the Freeholder or their appointed agent. As a note of caution, it is important to note that the fewer years left on the lease, the more expensive the extension is likely to be.
Lease extensions cannot be refused as they are legislated by The Leasehold Reform, Housing and Urban Development Act 1993 as amended by the Commonhold and Leasehold Reform Act 2002.
You solicitor will act on your behalf and register your apartment with land registry. Merlin Estates Ltd has no involvement with lease extensions negotiations other than our requirement to sign off any Restricted Covenants on behalf of the Management Company.
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