Leasehold extension can be a very straightforward and effective way to safeguard the value of your property and to secure your future. However, complications can arise, unless you take action to avoid them. Here are three smart tips that will help you to make the whole process of extending the lease on a flat much easier and more effective.
1. Extending A Lease – Look At Your Existing Lease
Your decision extending the leasehold on your property will depend on the terms of your current lease. How much longer does it have left to run? If you’re approaching the 80 years mark, you should move very quickly indeed. After 80 years, lease extension becomes much more expensive and complicated, since you’re obliged to pay the landlord a “marriage value” payment, based on a prospective increase in the value of the property.
Other things you’ll need to consider are whether the lease contains special clauses which might affect your statutory right to apply for an UK lease extension, or whether the lease has already been extended in the past. This is a particular concern for owners of leasehold houses, since the law currently states that a lease on a house can only be extended once.
2. Extending A Lease – Consider The Costs Of Not Taking Action
The marriage value payment is one reason why people should extend leases sooner rather than later. It’s also worth paying careful attention to the effect a short lease will have on the value of your property – shorter leases invariably lead to lower property prices, unless you’re privileged enough to live in an elite urban hot-spot. Put simply, short lease properties are much, much harder to sell, and are unpopular with buyers and lenders alike.
Even if you have no intention of selling your property, you have your own investment to consider. A lease grants you the right to live in the building, not the building itself, which remains the property of the landlord. In theory, you could end up becoming a tenant in your own home, after years of making mortgage payments. Your future security depends on obtaining as long an extended lease as you possibly can.
3. Extending A Lease – Speak To The Professionals
Extending a lease can be a comparatively straightforward process but it does require a degree of expertise that most people don’t possess – the whole leasehold extension process, for example, involves a very strict timetable. It therefore makes sense to get specialist professionals working on your behalf ! A surveyor with plenty of experience of how to extend a lease will be able to provide you with a lease extension valuation, and a specialist lease extension solicitor will check your existing lease, serve the relevant paperwork and liaise with the landlord on your behalf. Any costs you incur at this point will be more than repayed by the long term increase in your security and the value of your home.
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