Lease extensions and staircasing

If you’re thinking of selling your home, it’s important to make sure you have a long lease, typically 90 years or more, so you can increase the number of buyers you will attract.

To qualify for a lease extension, you must:

• Own a long lease (a lease that was granted for longer than 21 years)

• Be the registered owner at Land Registry for at least the past two years and not be a business or commercial tenant. You do not need to have lived in the property for this period, you just need to have owned the lease for two years or more.

If you have a shared ownership lease, you need to have purchased 100% of the equity (completed the final staircasing).

If you are considering extending your lease or you want to discuss the process in more detail, please contact our property management team on 0344 736 0063 or email info@redwing.co.uk

 

The length of your lease will vary depending on when it was granted, so it’s really important that you check your lease, especially if your solicitor hasn’t shared this information with you when you purchased the property. We can obtain a copy for you - there is an administration fee, details of which are on our website. Mortgage lenders normally request that there is at least 80 years remaining on a lease, and usually will not lend if a lease length falls below 70 years. If you are re-mortgaging or considering selling your property, taking action before the lease falls below 80 years will avoid future complications.  

There can be cost savings made, mostly relating to legal fees, when several residents extend their lease at the same time. This is called ‘collective enfranchisement’ and is something that you may wish to consider if you live in an apartment block or similar. You may be aware that the government is introducing legislative changes to the way landlords approach lease extensions in the future. We are awaiting further government guidance on these matters and will act accordingly. Redwing does not currently charge ground rent to any of our leaseholders, and have not done so for many years. 

Yes, the shared ownership model is designed to help first time buyers take their first step onto the property ladder, allowing you to purchase the maximum share that you can afford at that time and, as your circumstances change, purchase additional shares in the property until you own 100% of the equity.

Whether it is a 25% or 75% share you purchase, until you own 100% of your property you will pay rent on the remainder of the property that you don’t own. The rent on the share of the property that you do not own will be subject to an annual rent increase. The greater the share you own, the lower the rent payable.

Is staircasing right for me?

It is good practice to review your financial situation on a regular basis and seek independent advice before you buy additional shared in your home. This will enable you to understand whether purchasing an additional share is more financially viable for you than continuing to pay the rent. 

There are fees involved each time you staircase, so it is important that you are aware of these. You will be required to have the property valued by a surveyor that is RICS qualified, and you will also need to appoint a solicitor to act on your behalf. Redwing’s administration fees for this transaction are detailed on our website.

{Redwing lease extension Form}

If you would like to discuss staircasing, please contact our property management team on 0344 736 0063 or email info@redwing.co.uk.