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 take action. Acting sooner rather than later will allow you to take advantage of all the benefits lease extensions bring.
Types Of 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:
- Acquire a copy of the lease: This allows us to determine the terms and demise of the property.
- Inspect the property: Our experts will thoroughly inspect the property to ensure accurate estimates.
- Carry out calculations: Research from in-person inspections and desktop estimates will fuel our calculations.
- Valuation reports: We will prepare and issue a valuation report, providing an accurate estimate of the premium payable.
- 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. Our lease extension service costs start from £395 + VAT and 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.