In this article we explain the difference between freehold and leasehold properties, as well as outlining the pros and cons of each and defining the term ‘lease extension’.
What is a Lease Extension?
Category: Lease Extensions
Lease Extensions Overview
In this article we summarise the costs and benefits of extending your lease, as well as outlining the stages in the process and introducing the concept of marriage value.
Reasons to Extend Your Lease
There are several benefits of extending your lease. These include increasing the market value of your flat and making your flat more appealing to buyers and lenders.
Cost of Extending Lease
The cost of a lease extension depends on various complex factors. We therefore like to break the cost of extending your lease down into five simple stages.
Lease Extension Process
In this series of articles, we summarise the lease extension process and link you through to our full explanations for each stage of this complex process.
Satutory versus Non-Statutory Lease Extensions
There are several pros and cons to both statutory and non-statutory lease extensions. The route you choose very much depends on your personal circumstances.
Can I Extend My Lease?
The eligibility criteria for a statutory lease extension are that you have been the owner of a long lease (one originally granted for 21 years or more) for at least two years.
Lease Extension Valuations
If you are eligible to extend your lease by the statutory means, the next stage is to appoint a surveyor to calculate the premium you owe to the landlord for the lease extension.
Section 42 Notice
After the surveyor has calculated the premium, your solicitor will draft an Offer Notice under Section 42 of the Leasehold Reform and Urban Development Act 1993.
The Inspection Stage
After the Section 42 Notice has been served, the landlord can request a deposit, see the title documents and inspect the property to reach their own valuation.