The Way To Extend A Lease With No Fuss

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This article provides a guide on how to extend your lease with little stress. When extending clients often want to know what they are entitled to when they extend, how much it will cost, and how to get started.

If you have owned a lease for more than two years - even if you haven't been living there - and it has over 21 years before expiry, then you can extend it. You should be permitted an extension of up to 90 years which is on top of any remaining years you have on your current lease. The ground rent will be reduced to zero and the cost you'll have to pay (the 'premium') to be calculated under the legislation.

But how much is that premium? Well, the landlord is entitled to compensation for the loss he will experience on granting of the lease extension. This will include:

- the decrease in value of the landlords reversionary interest in the flat; that is, the difference between the value of his interest now with the present lease and the value of his interest after the grant of the new lease with the extra 90 years.

- the landlord's share of the 'marriage value'

- compensation for loss arising from the grant of the new lease.


You may have already approached your landlord for a quote to extend your lease, but you will need a professional report that gives a valuation of the cost of the leasehold extension that can be used as a basis. The same report can also be used if the matter goes to tribunal.



The formal procedure to extend a lease is started by the service of the tenant's notice on the landlord. However, there is much work to be completed before you start the procedure and a professional adviser such as a lawyer experienced in this area, can make extending leasehold property smoother and more efficient.

First you will have to check eligibility to see if you can apply for the leasehold extension and under what terms. Subsequent to this the landlord will assess the value of the premium, your own finances must be established and gathering the information. When this stage is completed you should be getting ready to serve the notice and prepare yourself for any next steps.

It's advisable to get acquainted with what specialist solicitors and surveyors could do for you. There services may include a full valuation, negotiations with the freeholder, the solicitor will then deal with any legal processes and documentation. By doing this, you will make sure that your property is reaching its maximum saleability by sitting in the best possible place.

About the Author:
For anyone who is thinking about how to extend a lease, Bonallack and Bishop are solicitors with significant expertise in advising on extending leasehold property. Tim Bishop is senior partner at the firm, responsible for all major strategic decisions. He has grown the firm by 1000% in 13 years and has strong plans for continued expansion.



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


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