Despite the coronavirus pandemic your lease continues to reduce in length and if you have ground rent payments to make, these will continue too.
However, you are still eligible to extend your lease and our lease extension specialists are still able to provide our normal services to you.
Due to the current economic uncertainty there are some advantages to extending now. Read more to find out why it is a good time to start your lease extension.
Business as usual.
The lease extension process is almost entirely a desk-based operation. For Homehold, all of the services that we offer to you through the process: valuation, notices, negotiation and legal conveyancing continue to be available and can be completed to our same rigorous standards as normal.
Were you expecting a valuer to visit your property?
Unlike the valuation that a surveyor would undertake when selling or buying a house, in the case of a lease extension the valuer doesn’t need to visit your home. Read more about our lease extension surveyors.
Lower property prices.
Due to the pandemic, forecasters anticipate the UK’s property market to drop over the coming months.
Whilst this might not be good news for homeowners in general, it’s an advantage for leaseholders who want to extend their leases.
The price you pay to extend your lease (the premium) is heavily influenced by the value of your flat. The less it’s worth, the less you’ll have to pay.
We’re already using the fluctuations in the housing market to argue for lower premiums.
Money in the bank.
In the context of economic uncertainty and a stormy outlook for property values, many freeholders will be more inclined to accept a settlement on a lease extension.
Most freeholders are investors who hold a portfolio of different investments. As income streams from traditional sources such as shares and rents drop, freeholders are becoming more open than usual to settling for a fair price for lease extensions.
Reduced freeholder's fees.
Valuers working on behalf of freeholders often insist on visiting your flat during the lease extension process. The reason? This has the effect of inflating their fees – which are ultimately passed back to you.
In the majority of lease extension cases this is unnecessary: it just adds to the costs you face.
For the duration of the pandemic, in-person valuations will be discouraged and as a result your freeholder won’t be able to justify such high fees.