Extending Your Lease The Easy Way!

If you live in a leasehold property, then extending your lease may be the last thing on your mind. Many leaseholders put off making a decision, because they fear it will be a costly, time consuming and stressful procedure.

However, like so many other things in life, putting it off will only make it worse in the long run! The lesser time your lease has to run the less it is worth to a purchaser, therefore the more you delay the more you may lose out on. Luckily, this is something which can be overcome with planning ahead and smart thinking.

Your first move should be looking at your lease and finding out exactly how long it does have to run. It is scary how fast a 99 year lease can disappear! The shorter the remaining lease term, the less likely it is that potential buyers will be interested in your property - and it's worth bearing in mind that most mortgage companies don't like short leases either. Another way to put it is that your property reduces in value. Even if you don't intend to sell, you're in a much less secure position the closer you get to the end of the lease term, when your home becomes the property of the landlord. You should move very quickly if the remaining lease term is approaching 80 years. After that, any extension will have to include the so-called "marriage value" - a premium based on a projected increase in the value of the property. This is given to the landlord immediately and therefore increases the cost of a lease extension.

Once you have done this, you then need to contact a specialist lease extension solicitor to find out if you are eligible to start the process. Most people are. The law grants a general right to extend the lease for an additional 90 years on top of the remaining term, at a peppercorn rent, provided you've owned the lease for at least two years and that the original lease term was for more than 21 years. If you live in a leasehold house, you'll also need to check that the lease hasn't already been extended, since this can only be done once. There are individual exceptions to this general rule, so it's vital you involve a solicitor at this point.

Once you've made the decision to extend your lease, the whole process can be turned over to the professionals! A specialist valuer or surveyor will work out how much the extesion will cost, this figure will be based upon local property prices, what he believes is reasonable compensation to the landlord, your solicitor can then use this information to submit the initial notice to the landlord and do the conveyance when the new lease is awarded.

Getting the right expert help could mean your lease extension process will be smooth and stress-free. Once you have paid the initial costs you will then reap the rewards of a higher property value, financial security and peace of mind.


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If you're looking for an solicitors who specialise in extending a lease, contact Bonallack and Bishop - specialist solicitors who can help you in extending your lease. Tim Bishop is senior partner at the firm, responsible for all major decisions.