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This type of tenure means you –
in effect – own a right to occupy the land or a particular property for
an agreed period of years, for which they pay a ground rent to the person owning
the freehold (or a superior landlord).
Modern leases, which are clear and
concisely drafted, can be very satisfactory but many old leases are rambling,
contradictory and very much ill-drafted documents which need to be read and interpreted
with care by an experienced lawyer. Incidentally, as the leaseholder you
are legally called a lessee while the person who granted the lease originally,
usually the freeholder, is called a lessor.
Normally a lease expires at
the end of the specific number of years but there is enfranchisement legislation
– the Leasehold Reform, Housing and Urban Development Act 1993 – which
allows leaseholders jointly to acquire the relevant freehold. There are also provisions
which allows flat owners to take control of the management of their block. Inevitably,
there are complex terms and conditions and the regulations are not straightforward.
It is unlikely that anyone could carry out this work without specialist professional
advice. Start by contacting LEASE on 020-7493 3116 which can suggest local experts.
Most
mortgage lenders will fund the purchase of mortgage leasehold property, providing
a reasonable period of years would remain after the loan is repaid. The interest
rates and terms may vary marginally, and your solicitor will be able to explain
the implications.
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