© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
News that the UK officially went into recession in the final quarter of 2008 was shortly followed by advice from the Catholic church suggesting that worried citizens should pray to the patron saint of bankers for help in the economic downturn. With a stabilisation of property prices still to come the most sensible option is to be fastidious with finances and personal affairs.
Every cloud has a silver lining and flat owners with long leases should take advantage of lower property values and extend their leases.
Now is the time to do this as the property value is a very significant factor in determining the cost of extending the lease or buying the freehold.
Flat owners could actually benefit from the lower prices in the market. Most leases run for 99 years, but once they have less than 80 years left to run the cost of buying a lease extension increases significantly. However, it is possible to extend the lease and it is cheaper to do so when the market values are low, as the cost of extending is partly determined by the value of the property. Many solicitors will be able to advise and assist so that owners can take advantage of this opportunity.
Extending the lease could make it more saleable, so leaseholders should contact their solicitors and look into extending their term even if they are not planning on selling straight away.
Delaying it could hit flat owners with a double whammy. When property prices go up and the length of time left on the lease has gone down, it will be more expensive to extend it.
Once a leaseholder has been in the property for two years they have a right to extend the term. However, there are rcumstances whereby extending the leasehold might not be possible. A property solicitor will be able to advise on this.