Lease Extensions
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If you own a leasehold flat or are considering purchasing one, it’s important to be aware of the remaining years on the lease. While leases with 50-60 years left were once acceptable, mortgage lenders and buyers now require longer leases, often pushing owners to extend their lease even when 90 years remain.
This is due to the financial implications of lease extensions, as properties with shorter leases can be less appealing. The law allows most leaseholders (after two years of ownership) to extend their lease for an additional 90 years under the same terms, with the ground rent abolished. However, you will need to compensate the landlord for extending the lease.
The cost of extending a lease can vary significantly based on the remaining lease length. For instance, extending a lease with 85 years left could cost around £3,000, but this can rise to £18,000 when only 65 years remain. Therefore, extending your lease sooner rather than later can be more cost-effective.
Be mindful that owners are responsible for their own legal and valuation fees, as well as the freeholder’s costs. Some landlords may offer cheaper extensions with higher ground rents, which can complicate future sales or remortgages. It’s essential to carefully review any such offers.
Lease extension law can be complex, and many clients benefit from a free, no-obligation consultation with one of our expert solicitors or conveyancers. We can guide you through the process, explain the likely timescales, and outline the costs involved.
- Importance of Lease Length: Properties with shorter leases are less appealing to buyers and mortgage lenders, making it often beneficial to extend the lease sooner to avoid high costs.
- Lease Extension Process: Leaseholders can extend their lease by 90 years, removing ground rent, but must pay compensation to the landlord, with costs increasing as the lease shortens.
- Expert Guidance Available: Lease extensions can be complex, and we offer a free, no-obligation consultation to help guide you through the process, explaining the likely costs and timescales involved.
If you’re interested in using Nation Property Lawyers Ltd to assist with your lease extension, click for a free, no-obligation quotation.