Lease extensions for shared owners
The shared ownership lease was first introduced in the late 1970`s/early 1980`s and some of the leases issued by Gateway commenced in the mid 1980`s. Most of these leases would have been issued for terms of 99 years and accordingly the remaining term will have reduced significantly.
Gateway is aware that this may create difficulties for those shared owners wishing to sell or remortgage their property.
Leases with less than 70 years remaining on the lease are not attractive to mortgage lenders and this may make it difficult for purchasers, when you come to sell.
Shared ownership leaseholders have no statutory right to a lease extension, although the Homes and Communities Agency (HCA) recommend Housing Associations consider granting extensions to shared ownership leases wherever possible.
Lease extensions for 100% owners
The Leasehold Reform Housing and Urban Development Act 1993 and the Commonhold and Leasehold Reform Act 2002, grants a leaseholder of a flat the right to apply for a lease extension. The right arises once the leaseholder has owned the flat for at least 2 years and if successful the Lease is then extended by a further 90 years from when it would otherwise have expired.
Leaseholders would be advised to consult with their solicitors to ensure that the correct procedures are adopted.
Gateway will consider your request to extend your lease and will be happy to provide you with further information. Please contact Gateway sales or telephone 020 8709 4375.