Extending Your Lease The Easy Way! - By: Tim Bishop

If you live in a leasehold property, then extending your lease may be the last thing on your mind. Many leaseholders put off making a decision, because they fear it will be a costly, time consuming and stressful procedure.

However, like so many other things in life, putting it off will only make it worse in the long run! A declining lease term directly affects the value of your property, and the longer you delay extending your lease, the more complicated and expensive it becomes. Luckily, this is something which can be overcome with planning ahead and smart thinking.

The first thing you need to do is to find a copy of your existing lease, and check just how long it's got left to run. It is scary how fast a 99 year lease can disappear! The shorter the remaining lease term, the less likely it is that potential buyers will be interested in your property - and it's worth bearing in mind that most mortgage companies don't like short leases either. Another way to put it is that your property reduces in value. Even if you don't intend to sell, you're in a much less secure position the closer you get to the end of the lease term, when your home becomes the property of the landlord. You should move very quickly if the remaining lease term is approaching 80 years. After that, any extension will have to include the so-called "marriage value" - a premium based on a projected increase in the value of the property. This has to be paid up front to the landlord, and adds considerably to the expense of extending a lease.

Once you have done this, you then need to contact a specialist lease extension solicitor to find out if you are eligible to start the process. Most people are. The law grants a general right to extend the lease for an additional 90 years on top of the remaining term, at a peppercorn rent, provided you've owned the lease for at least two years and that the original lease term was for more than 21 years. If you live in a leasehold house, you'll also need to check that the lease hasn't already been extended, since this can only be done once. There are individual exceptions to this general rule, so it's vital you involve a solicitor at this point.

Once you've made the decision to extend your lease, the whole process can be turned over to the professionals! A specialist valuer or surveyor will work out how much the extesion will cost, this figure will be based upon local property prices, what he believes is reasonable compensation to the landlord, your solicitor can then use this information to submit the initial notice to the landlord and do the conveyance when the new lease is awarded.

Getting the right expert help could mean your lease extension process will be smooth and stress-free. You'll continue to enjoy the rewards of increased property value, financial protection and peace of mind long after you've paid the initial costs.

About the Author

Tim Bishop is senior partner at Bonallack & Bishop, a firm of solicitors experienced in extending a lease who can advise you on extending your lease today. Tim is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. He has expanded the firm by 1000% in 12 years and has plans for its continued development.

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