Is it true that we need to extend our lease before it falls below 80 years?
Question: We have recently been advised to extend the term of the lease on our flat. There are 81 years left on it, but we’ve been told the 80-year mark is important. Is this correct?
Answer: You’ve had good advice. Having a short amount of time left on your lease can have consequences for you.
Mainstream lenders usually require a minimum unexpired lease term over and above the mortgage term, sometimes around the 80-year mark, so it may become more difficult to remortgage your flat.
It may reduce the resale value, too, for example because potential buyers would need to seek a lease extension after their purchase.
If a lease below the 80-year mark is extended, additional compensation may be payable by you to the landlord. This is referred to in the market as “marriage value”, and its calculation is a technical issue for a valuation surveyor.
If you do need to extend your lease, it can be possible to agree a voluntary extension with your landlord.
Alternatively, if you have lived at the property for longer than two years, you may have a statutory right to extend.
The statutory framework sets a procedure and timetable for you and the landlord to follow.
https://www.homesandproperty.co.uk/property-news/extending-a-lease-80-years-a137191.html