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How to Extend Leasehold
When you buy a leasehold property, you’re essentially buying the right to live in the property for a specific period of time, as stipulated in the lease agreement. Typically, leaseholds are granted for a period of 99 years or less, and if your lease is nearing its end, you may be wondering what your options are. It’s important to understand that as the lease gets shorter, the value of your property decreases, so it’s in your best interest to extend your lease sooner rather than later.
The process of extending a leasehold can seem complicated, but with the right guidance, it can be a straightforward and relatively stress-free process. Here are the steps you need to follow to extend your lease:
Step 1: Check Your Eligibility
You are eligible to apply for a lease extension if:
– You have owned the property for at least two years
– Your lease was initially granted for 21 years or more
Step 2: Obtain a Valuation
Next, you’ll need to obtain a professional valuation of the property, which will help you determine how much you should expect to pay for a lease extension. Your valuation should take into account the remaining length of your lease, the value of the property, and the ground rent payable.
Step 3: Serve a Section 42 Notice
Once you have your valuation, you’ll need to serve a Section 42 Notice on your landlord, which is a legal document that formally notifies them of your intention to extend your lease. The notice should include your proposed premium for the lease extension, which must be a reasonable offer based on the valuation you obtained.
Step 4: Negotiate the Terms
Your landlord will have two months to respond to your Section 42 Notice, and they may either accept your proposed premium, negotiate the terms, or reject your offer outright. If your landlord disputes your offer, you may need to negotiate the terms through a process called leasehold enfranchisement.
Step 5: Finalize the Agreement
Once you and your landlord have agreed on the terms, you’ll need to formalize the agreement with a Deed of Variation, which will extend the lease term and set out the new terms and conditions of the lease.
By following these steps, you can successfully extend your leasehold and secure the value of your property for years to come. If you’re unsure about any aspect of the process, it’s always a good idea to seek professional advice from a qualified solicitor or licensed conveyancer.”
2023-05-04 09:55:57
