Categories:Real Estate,UK

Video: how to extend a lease — FAQs for leaseholders and freeholders

By Shital Metah

Why should I extend my lease?
A lease is the right to use the property for a period of time. As the lease gets shorter, the value of the lease decreases and it becomes more expensive to extend the lease. That’s why it’s often a good idea to increase the term of the lease. Sometimes it’s difficult to sell a property with a short lease because mortgage lenders may be reluctant to lend money on such properties.

How can I extend my lease?
A lease holder can either extend their lease using the Leasehold Reform, Housing and Urban Development Act 1993, if applicable, or by private negotiation with their landlord.

When should I extend my lease?
When the lease drops below 80 years, the premium to extend the lease increases because marriage value becomes payable. Marriage value is the increase in value of the flat arising from the grant of the new lease. It is therefore recommended that the lease is extended before it drops below 80 years…

Click on the link below to watch the IBB Solicitors video, or download the transcript.

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