ENFRANCHISEMENT Features
Can I put my flat on the market now? In theory there is nothing to stop you doing so, but depending which lease extension route you're taking, you might be storing up problems for yourself.
If you're going to serve a Section 42 Notice, putting your flat on the market now should not be a particular problem as you can assign the benefit of that notice to your vendor on completion of sale.
However if you're relying on the informal route, then unless you can get your freeholder to finalise your lease extension before exchange of contracts, you will probably find most sensible purchasers are unwilling to exchange or complete - unless you agree to a significant drop in price for a cash buyer.
And finally… Don't delay your lease extension. Not only does getting it out of the way now, mean you needn't worry about delay or other problems when you come to sell your flat, but the big advantage in the current property market of acting now is that the price of your lease extension is going up rapidly.
You're being hit by a double whammy – every day your lease is becoming shorter and is worth less, and rising property prices mean the cost of your premium is also going up. In fact a leading freehold investment company estimates that the cost of lease extension premiums is rising annually by a remarkable 12%.
So go ahead, start your lease extension today.
Tim Bishop is a Senior partner at Bonallack and Bishop, solicitors specialising in lease extension
www.leaseextensionuk.co.uk.
How do I find the right professional To find a specialist surveyor, solicitor or managing agent that has lots of experience in this area, always use a member of ALEP (Association of Leasehold Enfranchisement Practitioners). The leading body representing this part of the industry.
A complete list of their members appears in the directory section on page 64, or you can visit their website.
www.alep.org.uk
Issue 20
49
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