What Is a Lease Extension?

A lease extension is a binding contract between parties – usually the freeholder and the leaseholder – which adds a continuation period to the lease, replacing the existing lease with a new one. The contract sets out the dates the lease extension starts and ends along as well the new terms if there are any. A lease extension extends the time you have before ownership of the property returns to the landlord. You can find out how long your lease has left by downloading the leasehold title from the Land Registry website. For Essex lease extensions, talk to our team today.

Why extend your lease?

When the lease on a property drops below 80 years, it immediately becomes less valuable and desirable. The more the lease drops, the more the value of the property will depreciate. If your property has less than 75 years remaining on the lease, it will be more difficult to find a mortgage lender, and the number of potential buyers will become significantly limited.

As the UK government begins to implement new legislation to make lease extensions more affordable, now is the best time to act. Acting sooner rather than later will allow you to take advantage of all the benefits of lease extensions in Essex.

Types Of Essex Lease Extensions Available

Voluntary Extensions

If both the landlord and tenant agree to a lease extension, the process is simple. Our experts will assist you with voluntary extensions, carrying out inspections, calculations, valuations, and negotiations (if required).

Statutory Extensions

In accordance with the Leasehold Reform, Housing & Urban Development Act (1993), tenants can extend their lease if they are happy to pay the landlord a premium. Statutory extensions add 90 years to the existing lease term and reduce the ground rent to zero.

What’s Right For You?

Voluntary extensions are typically used when the terms of the extension are agreed upon by both the landlord and tenant. However, it’s worth knowing that either party can back out at any time.

Statutory extensions have strict rules and timeframes, offering more protection for both parties. Either party can apply to the Tribunal if there is a disagreement about the terms. There will be penalisations for any party that withdraws after the initial notice.

Steps Involved With Our Lease Extension Service

1. Acquire a copy of the lease: This allows us to determine the terms and demise of the property.
2. Inspect the property: Our experts will thoroughly inspect the property to ensure accurate estimates.
3. Carry out calculations: Research from in-person inspections and desktop estimates will fuel our calculations.
4. Valuation reports: We will prepare and issue a valuation report, providing an accurate estimate of the premium payable.
5. Negotiations: If required, we will conduct negotiations on your behalf.

How Much Does It Cost To Extend A Lease?

With Hair & Son, there are no hidden costs or unwanted surprises. We charge £395 + VAT for property lease extensions in Essex. If needed, an additional £325 + VAT will be charged to assist in negotiations. Fees will only be adjusted if a matter is taken to Tribunal.