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Shared Ownership Lease Extensions

A shared ownership lease typically lasts for 99 or 125 years from the start date written into the lease and your solicitor should have given you a copy of your lease when you bought your home.

If you don’t have this, you can get a copy from the Land Registry for a small fee. Once there is less than 70-80 years left on your lease, it can affect the value of your home and may make it more difficult to sell or re-mortgage.

If a shared ownership property is sold, the original lease is transferred to the new shared owner, rather than a new lease being created, and so, the time left on the lease remains.

It’s important to remember that mortgage lenders are often unwilling to provide a mortgage on a property where there is less than 85 years left on a lease, meaning trying to sell your home with a lease length shorter than this will be more difficult.

There is no statutory right to a lease extension but, where there is less than 90 years remaining on an existing lease, we will consider granting extensions on shared ownership leases on a voluntary basis.

Before completing an application for a shared lease extension, please read our Frequently Asked Questions on this page. To apply to extend your lease, please complete the form at the bottom of this page.

Frequently Asked Questions (FAQs)

Can I extend my shared ownership lease?
If you live in a shared ownership home, you do not automatically have a statutory right to extend your lease. But we will consider a voluntary extension of a lease as we understand how difficult it can be to get insurance or a mortgage if your lease has less than 90 years remaining. We advise leaseholders to apply to extend a lease whilst it still has 85-90 plus years remaining. When the length of a lease drops below 80 years, the ‘marriage value’ (an addition to the premium) is payable to the BVT as the freeholder. The cost of the ‘marriage value’ increases as the number of years remaining goes below 80 years. In addition to the cost of extending your lease, there are a number of other legal and valuation costs, including minor disbursements that are payable by the leaseholder.

Can I extend my lease through the voluntary route, even if I have a statutory right to extend my lease?
No, the voluntary route is only available for residents who do not have a statutory right to extend their lease. The full statutory process will be shared later this year. However, in the meantime, please go to our Buying your Freehold or Extending your Lease page for further details.

When can I extend my lease?
Under our voluntary lease extension scheme, you can apply to us to extend your lease if:

  • You are a leaseholder who owns 100% of the leasehold interest in the property.
  • The number of years remaining on the lease is less than 90 years.
  • There are no recorded breaches of our Design Guide.

How do I apply to extend my lease?
To apply, please pay the initial administration fee of £67.20 (VAT included). You can do this on our Pay Online Now page. Please include in the reference box: SOEXT and the first line of your address. Once you have made a payment, please complete our Lease Extension Request Form (at the bottom of this page). There is no minimum period you must have owned your home before applying to extend your lease.

How long will it take to complete my lease extension?
There are no formal timescales for extending your lease, but it normally takes around six months to complete a lease extension, depending on your circumstances.

How many years will be added to my original lease term?
Once everything is completed, the existing lease will end, and a new lease will be granted to you, adding an extra 90 years onto the original term.

Do I have the right to appeal if I am not happy with the valuation of my home?
Under our voluntary scheme, there is no formal appeal process if we (BVT) and you (the leaseholder) don’t agree with the quoted premium determined by the valuer. You can also get your own independent advice from a qualified solicitor or valuer before deciding whether to go ahead. We reserve the right to reject an application if agreement can’t be reached.

Do I need to instruct a solicitor to deal with my lease extension application?
It is advisable to instruct your own solicitors to liaise with our valuers and solicitors on your behalf.

Do I have to continue to pay ground rent?
Yes, ground rent is still payable after the completion of a lease extension. You will also have to pay any ground rent arrears outstanding on completion of the extension.

How much will it cost to extend my lease?
As well as the cost of buying the lease extension at the agreed valuation, you will also have to pay the following costs:

  • Legal fees (for both leaseholder and BVT).
  • Cost of any valuations.
  • Cost of any surveys.
  • The ‘marriage value’ of the extension (see below) where applicable.

It is estimated that the cost of valuation and BVT’s legal fees will be around £2,000 (including VAT). This is an approximate cost and may be considerably more depending on the complexity of your application.

Why do I have to pay for a valuation?
You have to pay for a valuation to understand the premium payable to extend your lease. You are responsible for paying for the valuation as we will instruct external valuers (i.e. Shepherd Property Consultants) to calculate this, quote terms and correspond with all parties throughout the process.

What is a marriage value?
The ‘marriage value‘ is the increase in value of the property following the grant of the lease extension as compared with the value of the property subject to the existing lease. It is applied if there is less than 80 years remaining on an existing lease.

How will the valuation be established when only part of the equity is owned?
The valuation will be based on 100% of the property and apportioned to the percentage you own.

Can I sell my house whilst I am applying to extend my lease?
Yes, the lease extension can be completed as part of the sale of your home.

Do I have to pay any costs/fees if I change my mind?
Yes. You will be responsible for all costs incurred by BVT, including legal and valuation fees, up to the point you withdraw from the process. You will be provided with an invoice that is payable within 30 days.

Do I still pay rent for the remaining percentage BVT own once the lease extension is complete?
Yes, rents will continue to be applied and paid in line with lease requirements.

Shared Ownership Lease Extension Request Form

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