If you buy a leasehold property, it’s important to know how long you have left on the current lease. It’s important because when the lease term falls below 80 years, the value of the property goes down and you can struggle to renew the lease without paying a lot of money, especially if you’ve not owned the property for at least two years.
If you bought a leasehold property and your Conveyancer or Solicitor didn’t tell you about the issues you could face with a short lease term, then you could claim compensation.
We usually deal with leasehold extension claims on a No Win No Fee Basis. Just ask us for details.
Our Professional Negligence Solicitors have helped many leaseholders claim compensation and get back the money they’ve lost because of their short lease term and their negligent Conveyancer.
If you think you’ve been affected, get in touch today for a free lease health check.
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Why Choose Simpson Millar?
- We Can Help You Put Things Right – if you bought a leasehold house or flat with a short lease, we could help you make a professional negligence claim to either get the money you need to extend your lease or restore the lost value in your property
- Free Lease Health Check – we’ll download a copy of your lease and see if we can help you with your short lease term
- We’re Open, Clear and Straightforward – we’ll only talk to you in language you understand and we’ll keep you informed every step of the way
- Move Your Claim Forward – once we know if we can help you, we’ll push your leasehold extension claim forward as quickly as possible
Can I Extend My Lease?
Yes you can. Here’s how it works:
As a leaseholder you have the legal right to extend your lease by up to 90 years once you’ve owned the property for at least two years and, as long as you extend it before the lease drops below 80 years.
If your lease has already dropped below 80 years, you’ll need to pay a fee to the landlord to get them to extend it. This is usually a ransom amount as landlords know that you will struggle to sell it or remortgage with such a short lease. This is because the property is devaluing as each year goes by.
If your Conveyancer or Solicitor had told you about the short lease before you bought your property, you could have either asked the owner to extend it by 90 years before you bought the property or you could have renegotiated the asking price to take into account the amount it will cost you to renew the lease with the freeholder.
But, if your Conveyancer or Solicitor didn’t tell you about the problem with your short lease, you could make a claim against them as they were negligent to not discuss the issue with you.
Marriage Value Explained
The value of a leasehold property increases when the lease term is extended. It’s this difference in value, compared to the value of the property before the extension, that’s known as the ‘marriage value’.
Part of a leasehold property’s value is also determined based on the property itself (bricks and mortar) but the overall value is greatly increased when it has a long lease.
The marriage value is decided by both you, the leaseholder, and the freeholder (landlord) with an independent valuation.
We explain short leases and marriage value in more detail in this video:
Marriage Value and Lease Extension Explained
What Can I Do about My Short Lease Term?
- Get in touch with our Professional Negligence Solicitors for a free lease health check to review your situation
- If we think you’ve got a potential claim, we’ll run through the next steps with you and get a copy of your conveyancing file from your previous Solicitor
- We’ll review your conveyancing file to see if there’s strong evidence to make a claim
- If your Solicitor or Conveyancer didn’t tell you about the short lease or explain what it could mean for you, then we’ll start your claim
- We’ll handle everything from start to finish, keeping you in the loop every step of the way.
Proud supporters of the National Leasehold Campaign (NLC)
Simpson Millar are proudly working in partnership with the National Leasehold campaign, an organisation set up to campaign for the abolition of residential leasehold in England and Wales.
By supporting this campaign, we are helping individuals who are caught up in the leasehold scandal to help ensure people affected receive the legal support they need.
For more information, visit the National Leasehold Campaign website.
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Download our Leasehold Pack – Help and Advice
We’ve put together a free, straightforward Leasehold pack to help explain the leasehold scandal and offer you some advice. For more information and download instructions please visit our Leasehold Legal Guide Download.
For free legal advice call our Professional Negligence Solicitors
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Simpson Millar Solicitors are a national law firm with over 500 staff and offices in Bristol, Cardiff, Lancaster, Leeds, Liverpool, London and Manchester.