Make the most of stamp duty break

The recent announcement that for a period of 12 months stamp duty on properties worth up to £175,000 will be exempt from the much talked about tax, may be welcome news to some first time buyers and homeowners, and is predicted to cost the Exchequer around half a million pounds over the year. But it's not just buyers that stand to benefit from the temporary extension - it could also make sense financially for people who own leasehold properties to consider making claims for lease extensions or freehold acquisitions.

Due to recent Court of Appeal decisions, the acquisition costs for a lease with less than 80 years left to run are considerably higher than those with more than 80 years. This is something that not all people are aware of and is applicable to many people in Greater London, where a majority of properties are leasehold.

"When a lease falls below 80 years an additional sum known as the marriage value is payable to the landlord, and so it is therefore beneficial to extend your lease prior to this point,” confirms David Ambrose MRICS Chartered Surveyor.

Many properties in London and the surrounds are leasehold properties, and some leaseholders may not be aware that they are entitled under the Leasehold Reform Housing and Urban Development Act 1993 to acquire a lease extension once they have owned the property for a period of two or more years.

Alternatively, for those who are selling their lease, the right to extend can be claimed prior to the completion of the sale and assigned to the buyer on completion. A professional valuation as to the value of the extension is required. However, as the current values of properties are lower than they have been for several years, this naturally impacts on the figures used to calculate the premium payable for the lease extension in the leaseholders favour.

Now is the perfect opportunity for leasehold owners to make such claims and use the market to their advantage, paying less for their lease extension and adding value and marketability to their property in the process.