If you are the owner of a leasehold property and the unexpired term on your property is nearing the critical level of 80 years left to run, you should be aware of the “leasehold timebomb”.
The leasehold timebomb relates to the problem of a decreasing unexpired term on leases for residential properties. You can quickly tell if this problem may affect you by answering the following question:
Do you pay ground rent?
If the answer is yes, this means that your property is leasehold and you own a wasting asset. The value of your property will reduce every year as the remaining time on your lease decreases – timebomb!
Whether you own a flat or a house, subject to certain qualifying criteria, you will be entitled to legally apply to either extend your lease or buy your freehold in the case of a house.
Through our sister company, MJ Boaden Chartered Surveyors, we can help you to resolve this issue by ensuring that the price you pay to purchase your freehold or extend your lease is as low as possible having regard to all relevant factors.
We have a dedicated website covering the issue of the Leasehold Timebomb which can be found here.