| When
you buy a flat or maisonette, you do not buy the flat itself,
you just buy a "lease" from the Council for a period
not exceeding 125 years, which gives you the right to live
in the property for an agreed period of time. At the end of
the lease period the flat will revert back to the Council
unless the lease is renewed or extended.
The lease is a legal contract between you
'the leaseholder' and the Council 'the landlord'. It contains
details of the property, including a map showing your home,
the block it is in, the estate where the block is located
(if relevant), and any garden, shed or garage included in
the sale. The lease will also explain your rights and obligations,
as well as those of the Council.
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If you bought your property with a 125-year
lease, the Council, as landlord, is obliged to provide you
with certain services and to charge you for those services.
These are called routine service charges. In addition, from
time to time you will be charged for your share of the cost
of any major works to your block or estate (if relevant).
These are called major works service charges.
Most leaseholders of flats have the right
to extend the lease for 90 years after they have owned the
lease to the property for at least two years. You have to
follow certain rules, but it's usually less complicated than
buying a share of the freehold. You will have to pay all the
legal fees involved.
If your lease covers the whole house (whether
it has been converted into flats or not) the rules on extending
the lease on a house will apply to your home.
It can be difficult to sell a property if
the lease has less than 50 or 60 years left to run. Potential
buyers may have problems getting a mortgage on a short lease,
and wouldn't be able to extend it themselves for at least
the first two years
Extending the lease will probably make your
home more attractive to buyers. You sell the longer lease
on with the property. It will probably increase the price
you are likely to get by more than you have to spend to extend
it.
What
is a Lease? |
Are
There Different Types of Leases? |
Extending
a residential lease |
How
do I extend the lease?|
How
much will it cost? | Lease
Extension |
Car
and Vehicle Leasing |
Example
of Lease Agreement |
Extension
of Short Leases on Central London Properties |
Rental
Challenges |
