Homeowners of residential leasehold properties are recommended to consider a lease extension as soon as possible. Many homeowners are unaware they are eligible to apply for a lease extension.
According to the Leasehold Reform Housing and Urban Development Act 1993, flat owners with long leases are eligible to apply for an extension. These owners can extend their lease up to 90 years on top of the original term. Leasehold houses owners also receive a similar legal right to extend their lease.
Homeowners who are not eligible for lease extensions are:
- If you have a short leases
- If your lease was originally granted for more than 21 years
- If you have not owned the lease for 2 years
- If you have extended your lease already
Homeowners can find out if they are eligible for an extension with the help of a lease extension solicitor. Many may be put off appointing a legal expert because of financial costs; however it may become more costly to go alone and you won’t have a legal guardian to advise you.
Your lease extension solicitor will make sure your application runs as smoothly as possible. They will take care of all the technical bits for you, including negotiations and other legal jargon. You will be at ease knowing your financial security is being cared for by professionals.
There a number of benefits to extending a lease, mostly financial. Most buyers avoid properties where the lease term has run down, and most mortgage companies will refuse to lend against them. Therefore, if your property has a short lease, it may significantly reduce the value of your home, and not to mention its salability.
For more information on extensions, contact a lease extension solicitor for specialist advice.
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