Extending your lease can be costly. You’ll have to pay your solicitors and also a surveyor who specialises in lease extension valuations.
Typically you can complete the statutory process in three to twelve months. Using efficient solicitors and valuers can help reduce the time it takes.
The process involves serving notices, negotiating the lowest premium, and then drafting your new lease and registering it at the Land Registry.
Costs
A lease extension is a complex process that requires the expertise of a specialist solicitor and valuer. The costs of extending a lease will vary depending on several factors, including the property’s value and the freeholder’s attitude. If the freeholder is uncooperative or cannot be reached through negotiation, a formal application to the First-tier Tribunal must be made.
The process can be costly, but it is essential to engage a specialist team of solicitors and surveyors to avoid being overcharged. It is important to choose a valuer who specialises in enfranchisement and is a member of the ALEP. The cost of a lease extension can affect your financial plans, so it is vital to weigh up the pros and cons of extending your lease before making a decision.
You are legally required to pay the freeholder’s reasonable costs, which are usually limited to legal and valuation costs. These include the legal costs of drawing up a new lease and checking that you have the right to claim a lease extension, as well as the cost of a valuation report. Your solicitor can assist you in finding a suitable valuer and negotiate with them to obtain the lowest possible premium. Once this is agreed, you can complete the statutory process of lease extension. Your solicitor can also draft the new lease, and may even be able to modernise its terms to make it more attractive to buyers in the future.
Time
The process of extending your lease can take anywhere between three to 12 months. This is because your solicitor will need to negotiate with the freeholder and arrange for a valuation. Depending on how difficult the negotiations are, the process can be lengthy.
During the process, you’ll also need to make payments for surveyors and conveyancing fees. Having an experienced solicitor on your side can help you avoid these additional costs. They can also ensure that the process is progressing quickly and smoothly.
Once your solicitor has served a Section 42 Notice, the freeholder has two months to respond. They may agree to the lease extension price or propose alternative terms. If you’re not happy with the terms, you can apply to the Leasehold Valuation Tribunal (LVT) for a ruling on what’s fair.
Extending your lease isn’t for everyone, but it can be a good idea if you plan to sell your property or remortgage it in the future. It’s becoming increasingly difficult to sell properties with less than 80 years left on the lease, and mortgage lenders are increasingly reluctant to lend if the remaining term is below 85-90 years. Moreover, buyers may be put off by the prospect of having to pay a premium to extend the lease. A solicitor who specialises in lease extensions will be able to weigh up the benefits and drawbacks of a short or long lease and work out what’s best for you.
Experience
If you own a leasehold property with less than 80 years left on the lease, you may need to extend it. This can be expensive, but it’s important to do so if you plan to sell the property or mortgage it in the future. A short lease can deter potential buyers, so extending it is often necessary.
To extend your lease, you need to hire a solicitor and a surveyor. The solicitor will advise you on the legal process and help you determine how much to pay for a new lease. The valuer will provide you with a valuation of the premium. The premium is based on a number of factors, including marriage value and comparable property values.
Choosing a solicitor with experience in lease extension cases can speed up the process. You should also choose a valuer with expertise in assessing freehold properties. They should be familiar with local market trends and the current laws surrounding lease extensions. They should also be able to work closely with your solicitor to minimize the time the process takes.
A good solicitor will help you decide whether to extend your lease voluntarily or under the statutory procedure. They will also help you negotiate with your landlord and get the price you want for the premium. If negotiations break down, your solicitor can apply to the First-Tier Tribunal for a ruling on what’s fair. However, this is an expensive option and should be avoided unless there are clear reasons why you can’t reach a deal with your landlord.
Expertise
A short lease diminishes the value of your property and makes it harder to sell or re-mortgage. Extending your lease can increase the value of your home and help you avoid expensive ground rent payments.
A specialist solicitor with experience in lease extensions can guide you through the process and help you reach an agreement with your landlord or freeholder. They can also advise on enfranchisement and collective re-enfranchisement (where the leaseholders buy the freehold of the block of flatsa from the freeholder).
The law allows you to extend your lease by up to 90 years and reduce the ground rent to a peppercorn. However, the process can be complicated and there are strict time limits. A solicitor with expertise in leasehold law can help you through the process, working closely with a surveyor to negotiate a price.
United Solicitors
United Solicitors is the trading name of United Solicitors Limited. Company Registration Number: 07452714. Registered address: 1016-1018 Stockport Road, Manchester, M19 3WN. United Solicitors are authorised and regulated in the United Kingdom by the Solicitors Regulation Authority under SRA Number 558658.
Do you need legal advice or assistance with a commercial property lease? Contact our commercial lease solicitors in Levenshulme, Manchester today. Our solicitors’ team is top-rated in Manchester
Visit Website: https://united-solicitors.co.uk/commercial-lease/
