If you own Leasehold flats (whether to live in yourself or as an investment) you may already understand that your lease is a diminishing asset.
As the length of your lease reduces, so does its value and the potential for a buyer to obtain a mortgage when you come to sell (especially if the lease has less than 70 years remaining on it). The latter may undermine a potential sale.
If your lease term has between 80 and 85 years remaining on it, this is a particularly good time to be considering extending your lease. If your lease length dips below 80 years, you will have to pay a larger premium to your landlord/ freeholder because “marriage value” has to be factored in.
Under the Leasehold Reform Housing and Urban Development Act 1993, so long as you own the flat for 2 years or more, you will generally have the right to extend your flat lease by 90 years on top of what is remaining and reduce your ground rent to a peppercorn (i.e. zero). Even if the flat is owned by a company, the legal right to a lease extension still applies. There are some exceptions to this general rule but your solicitor will be able to advise you on this.