What is a lease extension?
A lease extension is a legal process through which the lease term of a property, typically a leasehold property, is extended beyond its original expiration date. Leasehold properties are typically owned for a specific period, often several decades, and when the lease term approaches its end, it can have implications for the property’s value and the owner’s rights.
Leases are granted for a fixed term, for example 99 or 125 years. The value of your leasehold property will start to decline as the term creeps towards having 80 years left, while the costs of extending your lease will increase when the term drops below 80 years.
In order to guarantee a mortgage on a leasehold property, lenders require your leasehold property to have a minimum term associated with it.
Two ways of getting a lease extension
- Negotiation
- Using a statutory procedure
Secure your property’s future and explore your lease extension options with our expert Residential Property Team, who can assist you on every aspect of extending your lease.
