Can I Extend the term of a lease?
As the term of a lease gets shorter then the value will go down.
We would only consider requests where the term of a lease is less than 80 years. To apply you will need to set out your proposal to us in writing.
If we were to agree to extend then the lease would only go back to the original term, generally 99 years.
We will not consider any request where the rent accounts is in arrears.
The key steps involved:
- We will need to carry out a valuation that you pay for to work out the increase in value from the current term to the extended term.
- Once valued we will write to you and let you know the amount required to pay for the extension.
- If the price is agreed we would instruct our Solicitors, you will need to pay the costs for this, as well as your own solicitor, and relevant changes will be made to the lease and land registry.
Like improvements, extending a lease would add value to the property, and we would take this into when you decide to staircase and purchase additional shares.