Despite the fact that there is a general trend of rising real estate prices, since December house prices have started to fall, by as much as 0.1%. Unfortunately, thanks to the fragile economic recovery, many experts say that house prices will continue to fall in 2011.
While falling home prices are a symptom of tough economic times, it’s not all bad, and anyone looking to extend their lease may find it worth doing as property prices continue to rise. falling down.
But why go through the gibberish of lease extensions in the first place? Well, the advantages of longer leases are clear, for example, if your flat is on a short-term lease (say, 70 years), then you’ll see its value decline over time, because mortgage lenders generally won’t consider the loans for flats with short-term leases and many will instead ask about 30/40 years remaining on a lease after paying off a 25-year mortgage.
What you may not know is that claiming your lease extensions is a legal right, as is the right to manage your block as long as you’ve owned your property for two years (even if you don’t live there).
Before considering extending your lease, you should consider the following:
• Gear up. Find a copy of your lease and find out what your ground rents are
• Find a competent surveyor and ask him about the 13 variables he needs to calculate the premium, that way you can evaluate his experience.
• Don’t be fooled into buying a short extension with a high ground rent: you have the right to add a 90 year extension with no ground rent.
• Your original lease is not destroyed: it is extended through a variation deed.
• Register the variance deed with the HM Land registry so that it becomes part of the title to your property.
• For tactical advice on how to claim the right to manage block management online, visit leaseholdersupport.co.uk.