Katie Cohen

WHY IS IT IMPORTANT TO KNOW THE LENGTH OF YOUR LEASE? In general terms, the longer the lease the better, and those with more than 100 years remaining are not normally a problem from a valuation perspective. Legislation states that where the lease has less than 80 years remaining, the payment to the landlord will have to include 50% of the ‘marriage’ value (explained in more detail below) when the leaseholder acquires a lease extension under the 1993 Act. Further, the majority of mainstream mortgage prov

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. Commonly a nominal amount (e.g. £50, £100 p.a.). The ground rent will either be fixed meaning that a certain amount is paid every year for the duration of the term, or escalating whereby the amount increases by a certain amount throughout the term (e.g. doubling, increasing by a specified amount at a specific point in the term of the lease su