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Question: London Leases

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Can someone tell me what happens when the lease on a central London leasehold property expires? Does ownership automatically revert to the landowner or does the leaseholder have a right of renewal?

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My recollection is if it is the end of a primary lease an automatic 50 year extension with no rights to leave the lease to your heirs???????

Thoughts guys??????

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Sure, which is why long-leases when they fall below about 60 years start to get cheaper.

I remember seeing a 1 bedroomed flat in Kensington for about £130k a year or so ago. I thought it was mispriced.......... till I saw it only had 5 or 6 years leasehold remaining. :lol:

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Can someone tell me what happens when the lease on a central London leasehold property expires? Does ownership automatically revert to the landowner or does the leaseholder have a right of renewal?

The landowner always owns the land. The lease is a rent paid to the landowner. It can be renewed very easily using a lawyer that specialises in lease renewals. The term is usualy around 120 years. It will cost of course (around £6k for London) and it will take time. The implications of not renewing your lease is that you will not be able to sell the property until you have done it.

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Lease is basically like a rental. The property is owned by the freeholder but you lose the right to live there.

My understanding (a lawyer once told me this) is that you don't.

If a long lease expires and the property is the owner's main home, then the lease reverts to a statutory (protected) tenancy at a market rent.

This doesn't happen very often because few people want to lose the value that they have in the lease by not buying a lease extension. But if you pick up a cheap long lease with a short term remaining and know that you want to live in that house for the rest of your life, it might make some sense (and you can add the satisfaction of shafting the landlord!)

tim

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