The Basics Of Lease Extension In The UK
Join 1000's of Authors at StreetArticles Today!

Lease extension is something that many UK flat or apartment leaseholders may have to address during their period of ownership (we talking here those people owning a flat with a lease that was granted for a least 21 years – as distinct from merely renting a flat on say, a weekly or monthly basis).

Being a leaseholder you should be aware of how many years you have left on your lease, while also having in mind whether or not you want to extend it. The lease extension process can be both confusing and daunting, especially if it is something you haven’t had to navigate through before. In fact, many leaseholders aren’t even aware that they have a legal right to extend their lease. Odds are you have various questions, such as why you should extend and how to get started. This brief guide looks at the basics of UK lease extension and what it is you should ask yourself.

Do you want to extend your lease?

The answer to this question will almost certainly be yes because of the benefits it brings. Think about what your lease entails and you’ll quickly find out that its length has a direct connection to both the value and resale potential of the property. If selling your isn’t on the horizon then although the need for a lease extension may not be immediate, there are a number of very good reasons why you should be considering a lease extension sooner rather than later.

The idea behind lease extension isn’t complicated in principle; a flat with a longer lease will appeal to buyers far more than those that have 70 years or less left to run. Simply put, very few individuals will opt to buy a flat only that has a short lease attached, largely due to the expense they will have to face post-purchase. And what’s worse, a flat with 70 years or less to run, will be increasingly difficult to sell – why? Lenders are increasingly reluctant to lend on short leases. Whilst 10 years ago, it was not unknown to get a mortgage on a flat with 50 years left on the lease – now you’ll be lucky to find a lender if the lease 70 years to run.

If you are unsure whether or not lease extension is right for you try speaking to a specialist lease extension solicitor. In theory, the sooner you put in a notice to extend the better, as if you leave things too long the price of extension can escalate. This is particularly true in a rising market – because the more your flat is worth, the more you will need to pay for your lease extension. Obviously there are certain criteria that you must meet in order to extend, during the fact that you will need to have owned the flat for a least two years – though there is no requirement that you need to have ever lived in it personally.

Important information to consider

Price – At the end of the day an extension can only be applicable to you if you can actually afford it. The crux of the matter is that the less years remaining on the lease then the more you will have to pay lease extension. It’s particularly important, if possible, that you extend a lease before the term drops below 80 years – why? Because the day your lease term dips below that critical 80 year period, your freeholder is entitled to charge an additional premium, which adds thousands of pounds to the cost of any leasehold extension. Apart from the value of the flat and the length of the remaining lease term, there are a number of other factors which will influence how much your lease extension costs – including the amount of ground rent you need to pay.

Time – Lease extension is not a process that can be wrapped up quickly, it takes both time and patience. If you go down the formal statutory route (as distinct from agreeing a lease extension for me with your freeholder, which has its own risks) you can expect the process to take around 6 months. Remember, that in order to make the process quicker have all your paperwork already in order and appoint a specialist lease extension solicitor to file a notice of extension as soon as you can.

Process – In order to make sure that the process runs smoothly, be sure to have all your information and paper work prepared properly. Make sure that you get specialist legal advice from an experienced leasehold extension solicitor. A specialist solicitor will help to determine whether you are eligible to extend your lease and should be able to point you in the direction of a specialist surveyor who can assess the premium you will need to pay to the freeholder in negotiating a leasehold extension.

Starting the process

What has been addressed in this guide is really only the basics of the leasehold extension process. In fact, it is a complicated process that requires the knowledge of an experienced specialist lease extension solicitor such as Bonallack and Bishop in order to complete properly. However, you should remember that very few solicitors handle leasehold extension regularly and you should really be on the look out for someone who specialises in this awkward area of law.


Street Talk

No comments present
You May Also Like
Heirs According to Shariah Principles Of Succession
Shariah lays down the relations that qualify as heirs following the death of an individual. The deceased's estate can only be transferred to persons who qualify as heirs under Shariah Law principles. Anyone who does not qualify as an heir gets nothing from the estate. The first step followed by…
By: Hassan Elhais in  Legal   Jun 07, 2016  
0
  Likes: 0

The Patent (amendment) Rules, 2016
Draft Patent (Amendment) Rules, 2015 proposing amendment to the Patent Rules, 2003, was issued by Ministry of Commerce and Industry on October 26, 2015 and has invited comments from the public. The Government of India has now published Patent (Amendment) Rules, 2016 (Rules) vide notification dated May 16, 2015 amending…
By: singhania in  Legal  >  National State Local   Jun 07, 2016  
0
  Likes: 0

Criminal Law About Finance
Banks and financial institutions are a part of everyone’s life. The financial relationship between a person and his bank is government by documents and agreements. In the event of loans, especially mortgages, this relationship is beneficial but can become complicated, especially when issue arises of default. If An individual with…
By: Hassan Elhais in  Legal  >  Criminal Law   Jun 05, 2016  
0
  Likes: 0

End Of Service Benefits Comparison Of Gratuity Under the UAE Labor Law And Difc Laws
Employees are eligible for Gratuity at the end of completing a full years of service. This gratuity is calculated as 21 days of salary. Salary in this case excludes any allowances for housing or car etc and considers the basic salary of the employee. Both the DIFC Law and the…
By: Hassan Elhais in  Legal  >  Labor Law   Jun 05, 2016  
0
  Likes: 0

Criminal Law About Fraud
Federal Law No.(3) For the Year 1987 on Passing Penal Code Article No.399: "Shall be punishable by confinement or by a fine any individual who, by using fraudulent practice, assuming a false name or quality, takes possession for himself or for others of any movable property or written instrument, or…
By: Hassan Elhais in  Legal  >  Criminal Law   Jun 02, 2016  
0
  Likes: 0

Family Law - Marriage Dissolution
The dissolution of a marriage is a legal act that may not coincide with the emotional tearing asunder. Divorce is typically a painful process for all concerned. While it can take adults time to regain psychological equilibrium, there is also a threat to be involved in a court proceeding claiming…
By: Hassan Elhais in  Legal  >  Family Law and Divorce   Jun 02, 2016  
0
  Likes: 0

Always Be Prepared And Equipped With Knowledge Of Construction Law!
The construction industry in Dubai is one of the largest sectors that are contributing towards economic growth and development. The economy has received boost as the number of construction projects are increasing. Specifically, the government has sought to provide incentives for construction companies so that the sector can contribute towards…
By: Tania Jelinek in  Legal  >  Corporations LLC   Jun 01, 2016  
0
  Likes: 0

Things You Need to Understand About Women's Handbags
Women's purses are like diamonds, sneakers together with other manner add-ons. Women's handbags absolutely are a woman's ally. You cannot consider females without having purses. They often carry purses wherever they go within a day-to-day foundation for his or her benefit.Currently, women's handbags are definitely the critical vogue statements. Handbags…
By: moschinoonline in  Legal  >  Elder Law   May 31, 2016  
0
  Likes: 0

Any Growing Great Need Of Technology With Our Modern Resides
As handful of stated, that systems has constructed living much more comfortable in the modern day scenario; instead technology provides a vital job in shaping everything to cause it to be comfortable for folks human beings. It is just not a method of at this time but this has been…
By: faiqa in  Legal   May 30, 2016  
0
  Likes: 0

Compounds And Know - how In Redoxy Serum
Redoxy serum is actually a new supplement from Gain Legacy Malaysia. That it was launched to your market with South East Asia considering March, 2014. Redoxy serum is often applied from look at toe, and works for both males and females, old plus young, and perhaps baby and women that.…
By: faiqa in  Legal   May 30, 2016  
0
  Likes: 0

5 Tips for Starters With Online Dating Service
For anyone fresh to online internet dating, it is critical to work the time and energy to get a safe in addition to relevant internet dating site though also giving the well written profile. Here usually are several significant steps for starters with online dating service: Identify some sort of…
By: faiq1 in  Legal   May 30, 2016  
0
  Likes: 0

Extradition: Conditional Requirement
Terms and conditions to be applied when delivering a suspect are set out in Article 7 of Law No. 39 these state that: 1. The crime must be considered an offense, be punishable in both countries and punishment must be imprisonment. 2. The crime that is the subject of extradition…
By: Hassan Elhais in  Legal  >  Criminal Law   May 30, 2016  
0
  Likes: 0

5 Tips to Begin With Online Dating Services
For anyone new at all to online online dating, it is crucial to do the persistence to discover a safe along with relevant online dating site even though also delivering the well crafted profile. Here are generally several critical steps to begin with online dating services: Identify a new preferred…
By: faiq1 in  Legal   May 30, 2016  
0
  Likes: 0

Components And Engineering In Redoxy Serum
Redoxy serum can be a new merchandise from Go back Legacy Malaysia. It absolutely was launched for the market regarding South Far east Asia given that March, 2014. Redoxy serum may be applied from check out toe, and works for people, old and also young, and also baby and expecting…
By: faiqa in  Legal   May 30, 2016  
0
  Likes: 0

A Growing Significance Of Technology In the Modern Everyday Life
As few stated, that know-how has designed living more at ease in the actual scenario; instead technology contains a vital factor in shaping the modern world to cause it to comfortable for many people human creatures. It just isn't a event of now but remember that it is a consistent…
By: faiqa in  Legal  >  Real Estate Law   May 30, 2016  
0
  Likes: 0

Article Views: 638    Report this Article