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I Can't Really Afford a Lease Extension

March 22, 2012 | Comments: 0 | Views: 201

Anyone who believes that they cannot afford either the cost or the time and effort to make an application for a lease extension on their flat might pause to consider what might happen to their property and perhaps themselves if they don't.

In the property market today there exists proven linkage between the value of a property and how many years the existing lease has to run. The longer the lease, the higher the value of the property, with the converse being equally true, so any saving you think you will be making today by not making your application for a leasehold extension is being eaten away as your existing lease becomes ever shorter and the value of your property proportionally declines. Delaying applying for or ignoring the need for a lease extension therefore becomes as false an economy as it is possible to make.

If you are thinking of selling your property, when the length of the lease drops to around 70-75 years you will find it harder to attract buyers. When the lease slips under 80 years potential buyers will be less interested as the Marriage Value will then become operative increasing the cost of applying for a leasehold extension. Should the lease reduce to less than 70 years, your prospective buyers will struggle to find any lender willing to offer them a mortgage and your property will become virtually unmarketable. Many properties built in the 1980s and 1990s were granted 99 year leases, so if your property falls into that category, the above becomes especially pertinent. In the extreme situation of you having allowed your lease to completely expire, you will find yourself with the status of assured tenant, with a greatly curtailed security of tenure and with no lease to extend or add value to your property with. Is the cost of the application still too high?

As for your time and effort in making an application for a leasehold extension, both would undoubtedly be best directed under the guidance of professionals; the services of an experienced, specialist solicitor and surveyor would ensure that the extremely time sensitive application procedure was correctly adhered to and that the outcome was as beneficial to you as possible. You might be tempted, in an effort to avoid having to pay the fees of experienced professionals, to take the DIY approach with your application, but the chances of your falling foul of the intricacies of the procedure or simply not knowing what to do in any given set of application related circumstances tend to place this method in the false economy category as well.

If your lease is approaching or is under the 80 years remaining point you might now consider that you really can't afford not to apply for a lease extension.

Is Leasehold Extension something that you have been putting off? If so, for specialist Lease Extension advice, contact the solicitors at Bonallack & Bishop first.

Source: EzineArticles
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