If you own a leasehold property where the lease term is below 85 years we strongly recommend you consider enforcing your legal rights to extend the lease.
The 1993 Leasehold Reform Housing and Urban Development Act (as amended by the 1996 Housing Act and the Commonhold and Leasehold Reform Act 2002) gives a lessee the right to extend the lease, so long as the lessee has owned the flat for two years. The Act specifies that the extension to the lease is for 90 years added to the existing unexpired term and ground rent reverts to a peppercorn.
In order to extend the lease you will need to consult a legal adviser for the necessary notice to be served upon the freeholder; costs will be involved including payment of a premium to the freeholder/head lessee.
For investor owners it is possible to put costs against their Capital Gains Tax liability when it comes to disposing of the property.
We are RICS registered valuers and carry out Valuations for assessing the premium to be paid for extending the extension.