In the past year there has been a marked increase in the number of requests made to RP’s to extend the term of Shared Ownership Leases. Such requests are made by leaseholders who find difficulty in obtaining a mortgage of their property where the unexpired term of their lease is 70 years or less.
Whilst shared owners have no statutory right to a Lease extension the HCA have advised RP’s to consider the same wherever possible. If a lease extension were not granted, the shared owner would be left with a lease upon which a mortgage would not be available and a property they may not be able to sell.
It would be usual for RP’s to extend the term of a Shared Ownership lease by way of Deed of Variation. As the extension is at the request of the leaseholder they would be expected to pay the RP’s legal fees in this respect. The consent of the HCA to such variation is not required as the fundamental clauses of the lease are unaltered.
Please contact us if you would like to discuss this issue in more detail.