Why is this significant?
NIHE flats are usually sold to tenants by way of a Lease with a term of 125 years. As time goes on the lease term decreases.
Most mortgage lenders have requirements for a Lease to have at least 70-80 years of the term left to run.
Therefore if you bought your flat from NIHE in 1960 you would only have 63 years left to run on your Lease and that would not be sellable to someone needing a mortgage.
Until now, there has been no provision for leaseholders to extend the term of their NIHE Lease which has caused difficulty selling flats.
Subject to a premium and certain eligibility criteria, leaseholders will now be entitled to a new Lease with an unexpired term of 125 years starting from the date of the new Lease.
If you need any advice on buying or selling your home – contact the Property Team @ Mills Selig today.
Editorial prepared by Ciara Campbell, Solicitor, Property @ Mills Selig
Ciara, Campbell Solicitor, Property
Ciara advises on a variety of residential property transactions including high-value sales and acquisitions, remortgages, plot sales and new build purchases.
T: 028 9044 5433
E: Ciara.Campbell@MillsSelig.com
W: https://millsselig.com/team/ciara-campbell/
