Why Do You Need A Lease Extension Lawyer?

on November 13, 2021 Comments Off on Why Do You Need A Lease Extension Lawyer?

A lease extension can help you sell or mortgage a leasehold property, when it is near the end of its lease. Our lease extension lawyers can guide you every step of the way, to make sure you get the most out of your property.

What is a Lease Extension?

A lease extension is the process of adding years back onto a lease, and extending the time you have in the property, before it goes back to the ownership of the landlord. 

You can do this either by negotiating directly with the landlord, or by serving a Section 42 notice, which we would recommend you discuss with an experienced solicitor. 

Why Might You Extend a Lease?

  • Extending a lease with less than 80 years can significantly increase the value of your property
  • If your lease is short, very few mortgage lenders will be prepared to lend against it, so it will be hard to sell the property. 
  • Property with a short lease will be hard to remortgage.
  • As the lease length goes down, the cost of extending the lease goes up.
  • Below 80 years, it attracts marriage value – which means if you extend, the freeholder is entitled to 50% of value, which the extension adds to the property.

What Does A Lease Extension Lawyer Do?

A lease extension lawyer can give you advice on how to go about extending your lease, how long the process might take, your options, and the potential next steps. They can also offer advice on purchasing a freehold, selling a leasehold property with a short lease, and simultaneously extending your lease and selling your property.

Raju JunejaWhy Do You Need A Lease Extension Lawyer?