MMA Surveyors
Know
Leasehold

Extending a lease

Many mortgage lenders will be unwilling to grant a mortgage on a property with only a short remaining term on the lease. Moreover, the adverse affect of a short lease on the value of your property may be significant - especially when a lease reduces below 80 years.

The Leasehold Reform Act 1993 allows most Leaseholder's to extend their leases. The Act will allow a lease to be extended up to 90 years providing that there was at least 21 years on the original lease, and that they have owned the property for at least 2 years.

However, the process is complex. It requires specific notices to be served by the parties within limited time frames. MMA Chartered Surveyors are able to advise property owners, vendors and buyers about the estimated cost of extending the lease and guide you through the process.

Acquiring the freehold

Where a number of Leaseholders in a building are in agreement, they may have the right under to purchase the freehold interest in the building. The process is known as collective enfranchisement

Collective Enfranchisement can give Leaseholders the advantage of managing the property themselves. However, it can also give rise to numerous responsibilities and some problems, particularly if the Leaseholders fail to agree on fundamentals such as maintenance and service charges.

MMA Chartered Surveyors are able to provide both Landlords and Tenants with a greater understanding of the process, and the likely costs. We can also provide parties with a valuation assessing the premium that may be payable to the landlord.