Reasons For Extending A Lease

By:




Getting an extension on a lease is a benefit to most leaseholders and therefore is something which is seriously worth considering. Under statute you have the legal right to get an extension on your lease for up to 90 years (Leasehold Reform Act 1993). Once this extension is granted, you are no longer liable to pay ground rent to your landlord. This article discusses the benefits of getting an extension on your lease.

One of the main reasons you should think about extending a lease is because as your lease decreases, so does the value of your property. If you have a very long lease (such as one that lasts for more than 100 years) then this will make little difference to the value of your property, but once that number starts to go down, then the money you can expect to make on the flat or house will also decrease. This is why extending a lease is encouraged.

Another reason to consider an extended lease as soon as you can is to avoid having to pay what is called marriage value. This is charged on leasehold extensions where the original lease has less than eighty years to run, so it is definitely in your interests as the leaseholder to start the application process as soon as you can. As long as you have owned the property for two years and your original lease had at least 21 years on it, you will be eligible to apply.

Also, if you think that you are going to want to sell your property in the future, then you should give some thought to an extended lease. This is because it can be harder to sell your property on if the lease has less than 60 years to run as mortgage lenders are more likely to view it sceptically. So, not only will a short lease make it harder for you to find a buyer for the property, but even if you do then your buyer is likely to find it tricky to get a mortgage to complete the deal.

Finally, extending a lease can give you peace of mind as it means you won't have to worry about what will happen if you are still living in the property when the lease runs out. It makes overall good sense, so if you are interested in an extended lease, get in touch with a specialist solicitor.

About the Author:
Bonallack & Bishop are lawyers who specialise in extending a lease. If you are a tenant wanting more information on how to get an extended lease, then contact one of their solicitors today.



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


Tags: , , , , , , , , ,

|

Loading...
Related....
Videos...

Recent Legal Articles

Comments

Still can't find what you are looking for? Search for it!

Loading

Site Navigation:

Copyright 2005-2011 ArticleSnatch, LLC - All Rights Reserved.
Privacy Policy | Terms of Service.