The purpose of this section is to give Leaseholders and Home Owners an insight into some of the services you can expect to receive from us. These services may vary depending on your lease and the scheme. If you have any queries, please contact the Leasehold Team at email@example.com.
If the number of years on your Shared Ownership lease has decreased significantly, this is known as a “short” lease, and when this happens the value of the lease reduces. A lease is generally considered short when the remaining term falls below 80 years. A short lease may create difficulties for a leaseholder if they wish to sell or remortgage.
A leaseholder who satisfies certain conditions has a right to be granted a new lease for an additional term of 90 years. If you are a flat owner and own 100% of your home, you may have a statutory right to extend your lease.
If you own less than 100% of your flat, or own a share of a house, you do not have a statutory right to extend your lease, but CCHA may agree on an informal basis to allow you to do so.
If you have a statutory right to extend your lease, there is a formal process that is prescribed by law. To proceed by this route you will need to serve a statutory notice under section 42 of the Leasehold Reform Act 1993; your solicitor will be able to advise on this. You could alternatively request that CCHA uses an informal process to grant an extension, this may be quicker and less costly in terms of legal fees.
If you don’t have a statutory right to extend your lease, you can make a request to CCHA which, if granted, would follow the informal process.
The cost of adding an additional 90 years to the existing term of your lease will be determined by a Chartered Surveyor (RICS registered) using the statutory formula (regardless of whether there is a statutory right to an extension or not). The formula calculates the value that an extension will add to your property. CCHA will arrange this valuation, but you will be responsible for the cost of providing it.
In addition to the cost of the valuation, and the premium, you will also be liable for your own solicitor’s fees and CCHA’s legal costs
Advice on lease extensions can be found here.