Getting an extension on a lease is a profit to most leaseholders and due to this fact is one thing which is significantly value contemplating. Underneath statute you will have the authorized proper to get an extension in your lease for as much as 90 years (Leasehold Reform Act 1993). As soon as this extension is granted, you’re not liable to pay floor hire to your landlord. This text discusses the advantages of getting an extension in your lease.One of many predominant causes it is best to take into consideration extending a lease is as a result of as your lease decreases, so does the worth of your property. When you’ve got a really lengthy lease (resembling one which lasts for greater than 100 years) then this can make little distinction to the worth of your property, however as soon as that quantity begins to go down, then the cash you’ll be able to count on to make on the flat or home can even lower. For this reason extending a lease is inspired.One more reason to think about an prolonged lease as quickly as you’ll be able to is to keep away from having to pay what is known as marriage worth. That is charged on leasehold extensions the place the unique lease has lower than eighty years to run, so it’s positively in your pursuits because the leaseholder to begin the appliance course of as quickly as you’ll be able to. So long as you will have owned the property for 2 years and your authentic lease had no less than 21 years on it, you’ll be eligible to use.Additionally, if you happen to suppose that you’re going to wish to promote your property sooner or later, then it is best to give some thought to an prolonged lease. It’s because it may be more durable to promote your property on if the lease has lower than 60 years to run as mortgage lenders usually tend to view it sceptically. So, not solely will a brief lease make it more durable so that you can discover a purchaser for the property, however even if you happen to do then your purchaser is prone to discover it difficult to get a mortgage to finish the deal.Lastly, extending a lease can provide you peace of thoughts because it means you will not have to fret about what’s going to occur in case you are nonetheless dwelling within the property when the lease runs out. It makes total good sense, so in case you are all in favour of an prolonged lease, get in contact with a specialist solicitor.

19September