Why now could be a good time to extend your lease
19 May, 2020
We are living in a time of great uncertainty; the property market has now reopened for business after grinding to a halt nearly two months ago. Agents can list properties for sale or rent and you can even go on a live viewing should you so wish.
Before Covid 19 there was some anticipation that 2020 would be a better year for sales than 2019 with a post Brexit positivity. That all seems to have gone by the wayside, in the current Covid world moving house may not be a priority and the economic circumstances are now being determined by a worldwide pandemic so we all need to have our crystal balls at the ready.
The Bank of England anticipate a fall in property values of 16% with large reductions and pre exchange price drops already starting to emerge. This means that now could be the best time to extend your flat lease or join together with your neighbours and buy the freehold of your block. As property prices fall the premium you pay might be substantially lower and you may only have a small window of opportunity to do this. Predictions by two major UK estate agencies are that there will be a rise in house prices of between 3 – 6% in 2021.
ALEP (Association of Leasehold Enfranchisement Practitioners) of which Storrar Cowdry are proud to be a member is already reporting an increase in activity in this area and if you have some spare time and don’t want to learn a new language or bake banana bread then take a look at your lease and give us a call or email.
Consultant Solicitor Department