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Insights

Should you extend your shared ownership lease now or wait?

Posted on 28th October 2021 in Affordable Housing

Posted by

Megan Lindsay-Bush

Solicitor
Should you extend your shared ownership lease now or wait?

Government proposals to reform the shared ownership model include all new leases being granted for 990 years instead of the current 99 or 125 years.

Existing shared owners would be given the right to extend their lease to 990 years in situations where their landlord is also the freehold owner of the property.  

Further details on this point are yet to be announced and so it is unclear whether the shared owner would need to pay a premium for the extension, whether any premium is capped or whether any associated fees would also be capped.

Most lenders will not lend on a lease with less than 85 years left to run and where there is less than 80 years left to run something called ‘marriage value’ is included in the calculation of the premium which can increase the sum significantly.

Other leasehold extension reforms include the abolition of ‘marriage value’, so if a shared owner still has a few years left before the lease term dips below 80 years, they may wish to see how the above pans out before seeking to extend their lease as it could potentially save them money.

 

How can Tozers help?

Our Affordable Housing team have over 25 years experience in this sector, forming close working relationships with their housing clients. To find out more about the areas they advise on and their bespoke services please visit their hub page or contact a member of the team.

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Insights

Should you extend your shared ownership lease now or wait?

Posted on 28th October 2021 in Affordable Housing

Government proposals to reform the shared ownership model include all new leases being granted for 990 years instead of the current 99 or 125 years.

Posted by

Megan Lindsay-Bush

Solicitor
Insights

Notice periods revert for residential landlords seeking possession

Posted on 05th October 2021 in Affordable Housing

Residential landlords will be able to seek possession on pre-pandemic notice periods from 1 October 2021, but need to keep alert to changes as economic or public health challenges may see timelines extended once again to protect tenants. 

Posted by

Sarah Schooling

Senior Associate & Solicitor