With a range of issues to consider, it’s important to understand the factors surrounding leasehold properties

Leasehold properties come with a range of factors and responsibilities and it’s important to understand what these are and whether they are right for you.

As opposed to freehold properties – where a homeowner will typically own the ground their home is built on for an unlimited period and have full rights to alter or repair a property – leaseholds come with some limitations and responsibilities. Specifically, there will be a limit to how long you will own the property for and, as you are likely to be sharing the premises with others – leaseholds frequently relate to flats and apartments – you may have other responsibilities or charges.

Whatever the specifics of your situation, there are a few key points to consider:

• The length of the lease – usually fixed for a number of years. To retain a property, this will need to be renewed well in advance of expiry.
• Restrictions – leases can come with limitations, perhaps the use of communal areas and gardens, rights of entry, or the alterations you can and cannot make to your leasehold property. Understanding these is important
• Associated costs – this will include service charges, ground rent and any liability for repair

Leasehold extensions

It is essential that you review the unexpired term of your Lease periodically. If a Lease has less than 80 years, it can become difficult to sell or re-mortgage.

If you start the lease extension process and the term has left than 80 years unexpired, a marriage value could be applied meaning that you are paying up to 50% more for a Lease Extension to be granted.