Extending your lease
Most new leases have a life of 125 years. New leases of this length are perfectly adequate for obtaining a mortgage, for keeping the value of your property, and for most other purposes. Over time the life of your lease will reduce and there will come a point when you should consider extending it. This is because if you own a property with a relatively short lease it could affect your ability to get a mortgage, and the value of the property may fall.
There is no fixed time at which you should apply to extend your lease, but it can be more expensive to extend leases with a life of less than 80 years.
If your lease is nearing the end of its life you should contact us as soon as you can to discuss an extension.
How can I apply to extend my lease?
The first thing that you should do is to contact us. In most cases we will be able to guide you through the process. There are several steps to follow. The main ones are listed below.
1. The first thing we will do is to establish your eligibility. You will normally be able to apply if you have owned the lease of at least two years. In some cases we may agree to extend your lease at the time you buy it.
2. We will advise you to appoint a valuer and a solicitor. In simple cases it may not be essential, but we advise you to do so to protect your own interests.
3. You or your solicitor will be required to apply to extend the lease. In simple cases this may be done informally be letter. In other cases you may be required to submit a formal tenants notice applying for the lease to be amended.
4. We will reply to your letter or notice. In most cases we should be able to agree to your proposals. In some cases we may request further information or send you counter proposals. If we do not agree with your application we will tell you the reasons.
5. If we agree to your proposals we may require a deposit to cover part of our costs.
6. If we do not agree with your application you may have the right to appeal.
Costs involved in extending your lease.
These will vary depending on the circumstances and could total several thousand pounds. They may include:-
- Legal fees
- Valuation fees
- Landlord’s costs
- Lease premium costs.
You can get further information about extending your lease from the Leasehold Advisory Service. Telephone 020 7383 9800