11 July 2019 by

Assignment of a Lease Extension Claim

Are you looking to buy a leasehold flat, but find you are having difficulties getting a mortgage because the term isn’t long enough?

Or do you currently own a leasehold flat and are having difficulties selling it because your lease isn’t long enough?

These are not uncommon issues that many leaseholders, or potential leaseholders, are faced with.

But fear not, it isn’t the end of the road; there are options available to you.

If the current owner has owned the property for two or more years, they are entitled to a statutory lease extension where the lease term is extended by a further 90 years and the ground rent is reduced to a peppercorn in exchange for a premium.

Although the current owner must begin the process, there is nothing to prevent them from being able to assign the benefit of that claim to a buyer who would then continue with the process.

However, it is important that the assignment is valid to prevent the buyer from losing out and not being able to carry on with the lease extension.  It is therefore important to ensure that the assignment deed is drafted correctly.

If the current owner hasn’t owned the flat for at least two years, although they are not entitled to a statutory lease extension, it may still be worth approaching the Landlord to see whether or not they are willing to grant a lease extension on a voluntary basis.

If you would like to discuss the possibility of extending your lease, or seeing if the lease can be extended for a property you are looking to buy, please get in touch with us on 0207 288 4700

4 July 2019 by

When is an offer to purchase shares a defence to an unfair prejudice claim

The recent Court of Appeal case of  Re: Sprintroom Ltd Prescott v Potamianos and anor  has provided further insight into […]

5 July 2019 by

Shareholders: How to protect your rights in decision making

As a shareholder of a company, have you ever felt that the majority are making decisions which are unfairly prejudicial […]

Signup To Our Weekly e-News

"*" indicates required fields

We’ll never share your details with any third party in line with our privacy policy.