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Residential Lease...
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OK what happens when a standard residential lease runs down to 0, does it revert back to the freeholder? what if you have say about 20 years to go does the freeholder have to renew the lease if asked? If so at what cost? I mean can they effectively force you out by trying to charge full market value of the property or is there some token cost you pay and the freeholder is forced somehow to go along. This question arose because a lender once refused me on the grounds that the lease had less than 75 years to run so I thought there must be something they are concerned with. Anyone know the process?
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Answer depends on whether it's a house or a flat. In both cases, leaseholder has legal rights (once owned leasehold for >2yrs) to extend lease (or, if house, to buy freehold). If does neither, becomes Assured Tenant (Housing Act 1988) when term ends, so at leaset not homeless- just lost all value of property and must now pay market rent!
Answer depends on whether it's a house or a flat. In both cases, leaseholder has legal rights (once owned leasehold for >2yrs) to extend lease (or, if house, to buy freehold). If does neither, becomes Assured Tenant (Housing Act 1988) when term ends, so at leaset not homeless- just lost all value of property and must now pay market rent!
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