Why Bother With Extending A Lease?
Getting an extension on your lease is a process that appears to be quite a bit of effort. However it really is worth it in the end. The amount of time spent on the process is easily worth the benefits you will reap from doing it.
It is a lot more difficult to sell a leasehold flat when the lease only has 50 years or less to go. If you are trying to sell to young people then they will have concerns that the lease will expire before they are old and therefore they will eventually have to find another place to live. Buyers will be highly concerned about taking on a shorter lease, this is because they will seriously struggle if they want to sell in the future. In knowing all of this information, you should take positive steps towards getting an extension as soon as possible.
Since the recession many properties have found themselves in negative equity. When you buy a flat you have no guarantee that it will increase in value when you come to sell. In order to be competitive you will need to do things of your own back to increase the value of your flat. One way of doing this is by extending a lease and as discussed above this is a definite yes if you are considering a sale.
Something else that is quite important to know is that mortgage lenders rarely lend on leasehold properties which have less than 50 years to run on the term. This is another to consider about your potential buyers if you are deciding whether or not to extend your lease. If you decide against an extension, then you will find yourself only dealing with cash buyers (if any) and they will not be willing to offer you the most competitive price. The crucial point is that you are narrowing down the market of interested buyers.
So if you are thinking of selling your flat you will want to ensure that it has at least 55 years or more left on it to run, in an ideal world over 80 would be preferable. This article highlights why it is important to stick with the lease extension process even though it will cost you some time and effort.
About the Author
Bonallack & Bishop are a firm of solicitors experienced in helping you extend your lease (http://www.extendingalease.co.uk ). They can offer you advice on extending a lease today. Senior Partner Tim Bishop is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 12 years and has plans for its continued development.
Tell others about
this page:
Comments? Questions? Email Here