Category: Leasehold
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What is ground rent?
If you own a long lease on a property in England and Wales you will normally have to pay rent to the freeholder or landlord of the property; this is known as Ground Rent. The lease will normally specify how much rent you have to pay and when it has to be paid. Generally the rent will…
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What is the difference between leasehold and Freehold?
When we talk about “owning” property in England and Wales we have to consider the two main types of interest in land that exist, which are freehold and leasehold. The freehold interest in land (sometimes referred to in legal terms as The Fee Simple Absolute in Possession) is the most complete interest that can be…
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Extending Your Lease – The Process
The Leasehold Reform, Housing and Urban Development Act 1993 gives leaseholders the right to extend their leases. Under the Act, flat owners can require their freeholder to grant them a new lease with an additional term of 90 years at a peppercorn ground rent. If you have owned your property for two or more years,…
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How Much Will It Cost To Extend My Lease?
This is usually one of the first questions that I’m asked when I receive an enquiry about lease extensions. I can understand that a lessee would want to know this when considering a lease extension but it’s not an easy question to answer over the telephone or even in an article such as this. I will…
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Extending a Lease – getting started
The majority of the flats in England and Wales are held on “Long Leases“. Historically residential leases were usually 99 years, but many modern leases can be 125 years or more. Leases on ex-local authority flats are also normally granted for 125 years. A leasehold interest in a property is a diminishing asset; as the…
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Should I buy a flat with a short lease?
Before answering this question I should probably define what we mean by a short lease. The majority of residential leases used to be for a term of 99 years, but more recently leases on modern purpose-built flats have been for 125 years or longer. Most leases on ex-local authority flats are also for 125 years. The value…