Leasehold Runs Out

When you buy a property, it is either on a freehold or leasehold basis. A freehold means that you own the property outright, whereas a leasehold allows you to own it for a certain period of time, depending on the terms of your lease.

If you choose to extend the Leasehold Services Ltd, your tenancy will continue on a month-to-month basis. However, you may have to give the landlord notice if you want to terminate it. You will also need to pay rent on a month-to-month basis, but this is typically lower than rent you would have paid as a full-term tenant.

You can extend the lease formally or informally, and both procedures will require you to serve the freeholder with a notice of intent to extend. In the latter, you will be liable to pay all legal and valuation costs that are incurred in extending your lease.

When Leasehold Runs Out

In an informal agreement, you and your freeholder can negotiate a lease extension that will add 90 years to the existing lease term. This is a more common option than extending your lease formally because you and your freeholder have a better chance of getting it approved.

There is also a procedure called “enfranchisement” that you can use to try and get your lease extended. This is an expensive and time-consuming process but if you can manage to do so, it will save you the hassle of having to sell your home.

It’s a good idea to look at the Title Deeds of your property and check how many years are left on your lease. This information is available to you at the Land Registry for a small fee (PS7), or you can ask your estate agent about it.

You should always be aware that the value of a leasehold property decreases dramatically if there is less than 80 years left on the lease. This is known as a “short leasehold” and mortgage providers are less likely to offer financing on properties with short leases.

If your lease is due to expire soon, you should contact a specialist law firm for advice and assistance. They can help you with all the details of what will happen to your lease, how long it’s left on, and if there are any ways you can improve your situation before the lease ends.

The leasehold will usually run out if you or your landlord decide to end it. In the UK, this happens when you have not been living in your home for more than a set number of years. It can also be caused by the freeholder not repairing your flat or house or allowing you to do any repairs.

If you or your landlord wants to convert an expired lease to a monthly tenancy, you need the landlord’s consent. You will need to provide a 30 days’ notice, and the landlord must return security deposits before converting the tenancy.