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href=\"../../../../../residential-property/to-rent/in-london/\">Property to rent in City of London</a></li>\n<li><a href=\"../../../../../residential-property/to-rent/in-leyton/\">Property to rent in Leyton</a></li>\n<li><a href=\"../../../../../residential-property/to-rent/in-walthamstow/\">Property to rent in Walthamstow</a></li>\n<li><a href=\"../../../../../residential-property/to-rent/in-hackney/\">Property to rent in Hackney</a></li>\n<li><a href=\"../../../../../residential-property/to-rent/in-islington/\">Property to rent in Islington</a></li>\n<li><a href=\"../../../../../residential-property/to-rent/in-stratford/\">Property to rent in Stratford</a></li>\n</ul>","Name":"Property to Rent"},{"Content":"<ul>\n<li><a href=\"../../../../../auctions/buying-at-auction/\">Buying property at auction</a></li>\n<li><a href=\"../../../../../auctions/buying-at-auction/guide-to-buying/\">Guide to buying property at auction</a></li>\n<li><a 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A lease is a diminishing asset, and problems arise when an owner wants to sell or remortgage. Purchasers prefer longer leases, while mortgage providers are reluctant to lend on unexpired less than&nbsp;80&nbsp;years. The longer leaseholders wait to extend their lease, the more costly it may be when it comes time to renew.&nbsp;</p>","Title":"Why should a leaseholder extend the lease of their property?"},{"Content":"<p><span style=\"font-weight: 400;\">Leasehold reform valuations are a multiplier of the ground rent payable for the term, then will arrive at the property's current value assuming the freeholder will not own it until the lease expires, which is why we use a deferment rate. In cases with less than 80 years unexpired on its term, we apply a marriage value.</span></p>\n<p>A leaseholder is taking something from the freeholder and they should be compensated for that loss. Where the lease has over 80 years to run, the freeholder needs to be compensated for the loss of the ground rent and the fact that they will now have to wait a further 90 years to get the property back.</p>\n<p>Where the lease falls below 80 years, the freeholder is also entitled to 50% of the marriage value. In simple terms, marriage value is the difference between the combined value of the parties' <strong>new</strong> interests and the combined value of the parties <strong>current </strong>interests.</p>","Title":"Why should a leaseholder pay a premium?"},{"Content":"<p>A leaseholder will be qualified for a lease extension if:</p>\n<ul>\n<li>The lease is longer than 21 years when initially issued</li>\n<li>The leaseholder has been registered as the owner of a flat for two years</li>\n</ul>","Title":"When does a leaseholder qualify for a lease extension?"},{"Content":"<p><span style=\"font-weight: 400;\">Most lease extensions follow the same steps:</span></p>\n<ul>\n<li><span style=\"font-weight: 400;\">Obtain valuation advice</span></li>\n<li><span style=\"font-weight: 400;\">To save costs, some lessees approach the freeholder to see if they can reach an agreement before progressing</span></li>\n<li><span style=\"font-weight: 400;\">Failing this, after a short period, serve a \"Section 42 Notice\", also known as a statutory notice</span></li>\n<li><span style=\"font-weight: 400;\">Typically, the freeholder will appoint a valuer (it is the leaseholder's responsibility to pay for the freeholder's valuation advice)</span></li>\n<li><span style=\"font-weight: 400;\">After a notice has been served, a counter notice will be served by the freeholder (also a \"Section 45 Notice\")</span></li>\n<li><span style=\"font-weight: 400;\">The parties&rsquo; valuers will negotiate. Alternatively, the leaseholder can negotiate directly with the freeholder or their valuer)</span></li>\n<li><span style=\"font-weight: 400;\">Both parties reach an agreement. If no agreement is reached, it will progress to FTT.</span></li>\n<li><span style=\"font-weight: 400;\">The solicitors tie up the legal matters</span></li>\n</ul>\n<p><span style=\"font-weight: 400;\">Though the steps can seem straightforward, complications often arise. Please be cautious and seek advice from professionals.</span></p>","Title":"What is the process of extending the lease of a flat?"},{"Content":"<p><span style=\"font-weight: 400;\">It allows lessees to extend their lease by 90 years at a peppercorn [nil] ground rent in exchange for paying a premium and some costs, or in some cases, to club together with their neighbours and buy the freehold of the block. The longer the lease, the cheaper it is to do.</span></p>","Title":"What does the Leasehold Reform, Housing and Urban Development Act 1993 mean to the leaseholder?"},{"Content":"<p><span style=\"font-weight: 400;\">An expired lease doesn't mean the leaseholder has to leave the property. If neither the leaseholder nor the freeholder has taken steps to end the tenancy, it will continue on the same terms. Until the leaseholder receives notice from the freeholder, they aren't required to do anything.</span></p>\n<p><span style=\"font-weight: 400;\">One of the following needs to happen for a tenancy to end:</span></p>\n<ul>\n<li>the leaseholder surrenders to the tenancy to the freeholder at their discretion</li>\n<li>The freeholder will serve a prescribed notice to the tenant to regain possession of the property</li>\n<li>The freeholder obtains a court order to gain possession of the property</li>\n<li>The freeholder may serve a prescribed notice proposing an assured periodic tenancy, where the leaseholder pays a monthly rent</li>\n</ul>\n<p><span style=\"font-weight: 400;\">If none of the above has occurred yet, the leaseholder is still the legal tenant, and it is still possible to extend the lease or purchase the freehold.</span></p>","Title":"What happens when the long lease comes to an end?"},{"Content":"<p><span style=\"font-weight: 400;\">The method of valuing a lease extension is set down by Statute. It is complicated and involves a lot of hypothetical assumptions. Some online calculators can provide a guide, but as there are so many variables, it is inadvisable to rely on less specific figures without seeking specialist advice. For details on how valuations are carried out, visit our guide or contact us to learn more.</span></p>","Title":"Why does the leaseholder need a valuer?"}],"Faq_Bottom_Text":null},{"__typename":"GLSTRAPI_ComponentComponentShowNewsInsights","id":"6176a882818041bba89abd89","Show_Hide":false,"Title":"You may also like...","Section_BG_Color":"white","Tab_List":[]},{"__typename":"GLSTRAPI_ComponentComponentOurServicesComponent","id":"61bafddc657b6b2815846956","Explore_Text":null,"Heading":"Related services ","Menu_Links":[{"Label":"Residential Property 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