Lease Extensions - Free, Independent Advice
Do you own a leasehold property with a term of less than 100 years? This site is dedicated to residential lease extensions, specifically providing free information on how much you should be paying and the process you need to take to extend your lease.
A lease with less than 100 years remaining can significantly impact the marketability and mortgage eligibility of your property. For flat owners, proactively considering a lease extension is vital, especially since the cost of extending a lease escalates inversely with the diminishing length of the remaining term. Early action in this regard is not only prudent but can be financially beneficial in the long term.
A Comprehensive FREE Guide to Lease Extensions
We offer a free lease extension resource for both leaseholders and freeholders. Our pride lies in being the foremost authority in comprehensive guidance for lease extensions in the UK.
Why Extend Your Lease?
Residential leasehold properties are considered depreciating assets, with their value decreasing annually. This depreciation becomes particularly pronounced when the lease nears the 80-year mark. While leases extending beyond 120 years generally experience minimal yearly depreciation, the rate of value loss escalates significantly as the term shortens to less than 90 years.
For leaseholders, it is imperative to initiate a lease extension before the remaining term falls below 80 years. At this critical juncture, the freeholder gains the legal right to levy an additional 'marriage value', leading to a substantial increase in the premium required for the lease extension. Proactive management of lease terms is thus essential to mitigate financial implications and preserve the property's value.
Who Is Entitled to Extend Their Lease?
You must have owned the property for at least two years, or a previous owner (of at least two years) has assigned their rights over to you.
How Much Will It Cost?
English law statutes specify a method for the calculation of the premium (the amount a leaseholder pays the freeholder). This involves a complex algorithm which compounds a number of formulas. Fortunately, we are able to provide an online Lease Extension Calculator which uses these formulas to provide accurate results.
How Do I Extend My Lease?
You can agree a premium with the freeholder either formally (proceeding in line with the Act) or informally (negotiating with the freeholder without serving a notice). However, it is generally recommended to pursue the formal statutory route.