A lease is in basic terms a very long tenancy agreement. As the number of years goes down the value of the lease also reduces. It is therefore common for the lease to be extended and in these cases a premium is payable to the landlord.
A lease can be extended voluntarily where basically the Landlord and property owner 'do a deal.' Normally valuation advice is obtained by one or both parties first.
The other way of extending a lease is by using a statutory process. Once someone has owned a leasehold property for two years they have a legal right to have their lease extended. If the terms of the extension cannot be agreed there is a set procedure to be followed.
One thing to note is the property owner is responsible for both their legal and valuation fees and those of the landlord. These can be significant, particularly if the statutory process is followed. Also a lease extension can be used to put new terms in the lease or tidy it up should some terms have been poorly drafted or become outdated.
Whatever the circumstances, get in touch with one of our advisers who can help and go through things with you.
With our free initial telephone conversation and no hidden costs policy, finding out more about your options is straightforward. Call us today on 01273 838 756 to arrange a chat with one of our experts today.