Should I buy a flat with 20 years remaining on the lease?—This is Money
Partner Shabnam Ali-Khan has been quoted in an article from This is Money, offering insights into the considerations of buying a flat of lower value with a short lease of 20 years, highlighting the potential risks, opportunities, and the impact of leasehold reform bills on such property investments.
Where a lease has less than 80 years remaining at the start of the formal lease extension process, the premium is higher because of an element known as marriage value. This represents the difference in value of the flat before and after the lease extension. The difference is the marriage value, and the freeholder gets half. The bill is looking to abolish marriage value which on the face of it means reduced premiums."
The full article is available to read online at This is Money.
Shabnam Ali-Khan is in the property law and conveyancing team, specialising in lease extension and enfranchisement matters, primarily under the Leasehold Reform Housing and Urban Development Act 1993 working with a variety of clients ranging from high-net-worth individuals and companies to individual leaseholders and investor landlords.
Real estate legal news—May 2024
Welcome to the third edition of Russell-Cooke’s real estate legal news. We would like to take the opportunity to update you on the developments, trends, concepts and issues that have caught the attention of our contributors in recent months.
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