Find out how to extend the lease for your home.
The length of your lease decreases over time. At the very start, a lease will usually be for a period (or term) of 99 or 125 years. If the property is sold on, the original lease is usually passed on, or assigned, to the new owner of the property. The new owner doesn’t get a new lease.
For example:
- A flat is first sold in 1990 to Mrs Jones
- The lease has a term of 125 years - so it will end in the year 2115
- You buy the flat from Mrs Jones in 2020.
- The original lease that is in the name of Mrs Jones is transferred to you.
- By now, 30 years have passed since the start of the lease so there are 95 years left until the lease ends in 2115.
Why extend my lease?
When the time left on a lease falls below around 80-85 years, it becomes harder to get a mortgage on the property. This could make it difficult for you to take out borrowing and also makes your property harder to sell.
All mortgage companies have their own requirements about this so we’d recommend you speak with your lender or a mortgage broker, if you need advice.
Am I eligible to extend my lease?
Leaseholders who own 100% of their property and have owned the property for at least two years have a legal right to pay for an extra 90 years to be added to the term of their lease.
If you are a shared owner or you haven’t owned your property for at least two years, we can also consider agreeing a lease extension on an informal basis.
If you want to extend your lease, get in touch with us by emailing home.ownership@newportcityhomes.com or complete our general enquiry form.