Extending A Lease On Houses - A Practical Option?

Extending A Lease On Houses - A Practical Option?

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Extending a lease is usually considered to be an issue for people who live in flats. Indeed, this is where the freehold and leasehold system is most likely to be encountered - a single building owned by a freeholder, who divides that building into multiple dwellings and leases out the right to live in each of them. However, it would be a mistake to think that leasehold only applies to flats. It's a system of property ownership that can apply to any sort of dwelling, and there are still an enormous number of domestic houses that are held on lease. If this situation applies to you, you can be forgiven for feeling like a "forgotten leaseholder". Nevertheless, extending the lease is something which you should consider just as urgently.

First of all, is lease extension the best option? Buying the freehold may be a better way to go, an option that is more likely to be available to you if you own the lease on a house, rather than a flat. Most importantly it would put you in control of your future. You would own both the property and the right to live in it, and you would no longer be liable for ground rent and service charges. However, the terms of the lease may not allow for this, and it may be unrealistically expensive anyway. If it is an idea you want to pursue then get advice from an experienced solicitor.

If buying the freehold isn't practical, then you still need to consider extending the lease. A short lease can seriously affect the value and saleability of your home, since it represents an unwelcome risk for potential buyers. Even if you have no intentions of selling, a short lease should concern you. If the lease ends, the property will no longer be yours. Your financial standing in the property will be redundant and you will instead be classed as an assured tenant of the landlord - far less secure than being a leaseholder.

The good news is that most people have the general right to extend their lease on their house, provided they've owned the lease for at least two years. There are exceptions, however. The following circumstances will prevent you from being able to extend your lease: if it has already ended, if it was granted for less than 21 years originally, if you have already extended previously (as the law only allows for a leasehold on a property to be extended once). There may be further exceptions to this so it is vital that you know your position.

Getting a lease extension does not have to be hard work, however you will need to be guided step-by-step through the correct process. A solicitor specializing in lease extension will help you to clarify your situation, set the appropriate process in motion and serve the relevant paperwork. By doing this, you not only protect your financial stake in your home, but you gain peace of mind and security too - far outweighing any legal fees you have to pay.

About the Author:
Tim Bishop is senior partner at Bonallack & Bishop, contact them today if you need a Lease Extension Solicitor. They specialise in providing advice on extending a lease. Tim is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 12 years and has plans for its continued development.



Article Originally Published On: http://www.articlesnatch.com


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