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 Dani Green on 020 7288 4751 or firstname.lastname@example.org