Extend Leasehold
Leasehold is a legal term for land that you rent from a freeholder, often a landlord. It can be used for a range of purposes including erecting residential properties, commercial property or even building something for the good of the community.
Whether you are buying or renting a Leasehold Services, house or business premises, the lease is an important part of your purchase. It allows you to use the space for a specified period of time, usually between 99 and 999 years.
When the lease expires, it is your right to extend it and stay in the property for another period of time. This can be for a month-to-month basis or on a longer term, typically up to 12 months. It is worth getting advice from a lawyer before signing a lease extension agreement, particularly if you’re unsure of what to expect.
How to Extend Leasehold
Extending a lease can be complicated, but it’s necessary to protect the value of your home.
It’s a legal process that can take several months, and you may have to pay valuation and solicitor’s fees for both parties.
The length of time it takes to extend a lease depends on how long is left on your existing lease, and the value of your property. Your solicitor will be able to help you calculate the time it will take, and can also suggest valuers who have experience in this area.
In many cases, extending a lease can save you money over the original sale price. However, it can also have a negative impact on your ability to sell the property in the future.
You can choose to extend your lease under the law (formal route) or negotiate it informally with your freeholder. Using the statutory route can be quicker and safer than an informal approach, but it does mean you will need to follow strict rules and timescales. This can be a lengthy and expensive process, so it’s important to do your research before you decide.
When extending your lease, you will need to ask your freeholder for permission. You can contact your freeholder directly or by contacting their agent – the person who deals with the management of your property.
Your solicitor will advise you on how to do this, and can handle the process for you if you’re unable to reach an agreement with your freeholder. If negotiations are unsuccessful, it’s possible to apply to a First-tier Tribunal, but this is rarely necessary.
Extending a lease is an expensive and time-consuming process, so it’s important to do it as soon as you can. This will give you the best chance of making sure that you’re protected against any future problems with your lease.
There are several benefits of extending your lease, so you should carefully consider how to go about it and what to expect. The key is to ensure that you don’t end up paying more than you need to, or making your property unsellable.