Lease Extensions
Why extend your lease?

Mainly because it's hard to sell a lease with less than 80 years left to run.

If you own a lease with 80 or more years left on it, the cost of getting it extended back to 125 years may only be a few thousand pounds. But when a lease has less than 80 years left to run the freeholder is entitled to a half share of the extra value resulting from the lease being extended. If extending the lease from 75 years to 125 increases its value by £30,000 the freeholder can claim £15,000 of that as part of the price charged for the extension. So, if your lease has less than 85 years left contact us now. Sort it out while it's still cheap and easy to do.

 Why do leases exist

In the UK we have two types of property ownership, Freehold and Leasehold. With Freehold you own the whole of your property. With leasehold you own your flat but will share some parts of the main building with other people. A shared entrance or roof perhaps, hallways, gardens water pipes or whatever.

The reason leases exist is to create a link between the owners of the various flats in a building so that someone (usually the Landlord) can make everyone comply with their obligations to repair and maintain their own flat and contribute to the cost of maintaining, insuring heating and lighting etc the shared or common parts.

There are other ways of doing this and other countries do it without leases. But in the UK we are stuck with them.The drawback to leases is that they are for a fixed term and will eventually run out.

Originally people thought a 99 or a 125 year lease was long enough not to have to worry about it expiring, but recently people have started to get concerned about the length of their lease even when there are still many years left to run.

The main reason for this is because a landlord will always charge a fee for extending a lease back to a longer term and the amount of that fee increases as the lease gets shorter. 
A lease with 95 years left on it may only cost a £2,000 or £3,000 to extend back to 125 years. One with 89 years left on it may cost £3,000 or £4,000. But once you go below 80 years, the cost starts to shoot up because the landlord then become entitled to half of the increase in value arising from the lease extension.So the cost may suddenly be £10,000 or £20,000 or more depending on the value of the property.

For more detailed information look at the next page "What to do next" or call us on 020 3633 4080
"Thank you for all your help and kindness" ~ AH

"I really appreciate how quickly you managed to sort my new lease out
for me.." ~ NO

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