What is a leasehold extension?

A leasehold extension is the process of extending the lease term of a property held on a leasehold basis. It helps maintain the property's value and desirability. Leasehold extension legislation allows leaseholders to extend their lease, ensuring the property remains attractive for sale or mortgage purposes.

How long is a leasehold extension ?

The length of a leasehold extension can vary depending on the jurisdiction and specific circumstances. In some countries, such as the United Kingdom, leasehold extensions are typically granted for an additional 90 years beyond the remaining term of the existing lease. However, it's important to note that leasehold extension regulations can differ, and it's advisable to consult local laws or seek professional advice like leasehold valuations for accurate information regarding leasehold extensions in a specific jurisdiction.

What are the benefits of lease extension ?

Extending the leasehold of a property offers benefits such as increased property value, improved marketability, easier access to mortgage financing, peace of mind and security, the avoidance of escalating costs, and more control over property management.

What happens to leasehold property after 99 years ?

After 99 years, the leasehold property typically reverts back to the freeholder, unless the lease is extended by the leaseholder. The ownership of the property, along with the land it is built on, returns to the freeholder once the lease expires. As a lease approaches its expiration, the property’s value may decrease, making it more challenging to sell or mortgage. It is advisable for leaseholders to consider extending their lease well before it reaches the 99-year mark to maintain the property’s value and their ownership rights.

Why choose leasehold Valuations for Lease extension or Buying Freehold ?

1. Fair Price: A leasehold valuation ensures you pay a fair price for a lease extension or freehold purchase.2. Increased Property Value: Extending the lease or buying the freehold can potentially increase your property’s value.3. Cost Savings: Accurate valuation helps minimise future costs like ground rent.4. Stronger Negotiation: A valuation report strengthens your position during negotiations with landlords.5. Legal Compliance: Valuations ensure you meet legal requirements for lease extensions or freehold purchases.6. Future Planning: Valuations help you plan for selling or passing on the property to future generations.7. Expert Advice: Engaging a valuer provides access to their expertise and guidance.8. Mortgage Support: Valuation reports improve your mortgage opportunities for lease extensions or freehold purchases.

How much does it cost to renew a leasehold ?

The cost of renewing a leasehold in the UK can vary depending on various factors, such as the property value, the length of the renewal term, and any negotiations between the leaseholder and the freeholder. Unlike extending a lease, which typically involves paying a premium to the freeholder, renewing a lease generally involves paying a nominal fee known as a “peppercorn rent” or a small percentage of the property value.The exact cost of renewing a leasehold will depend on the specific terms agreed upon between the parties involved. It is advisable to consult with a solicitor or a licenced conveyancer who specialises in leasehold matters to get an accurate estimate of the costs involved based on your particular situation.

Q. How much does it cost to extend a leasehold in uk ?

The cost of extending a leasehold in the UK can range from a few thousand pounds to tens of thousands of pounds, depending on factors such as the remaining lease length, property value, and negotiated terms with the freeholder. Additional costs include legal fees, valuation fees, and disbursements such as Land Registry fees. It’s recommended to seek professional advice for an accurate estimate based on your specific situation.

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A landlord’s advice to dealing with rent arrears

March 17, 2023

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What does rent in arrears mean?

This phrase denotes an overdue rent payment. This may be for a missed payment for the entire month. Rent payment frequency and amount are determined by the tenancy agreement outlined at the start of the tenancy, and being in arrears indicates a breach of that agreement.

One of the most frequent worries that any landlord has is making sure that the tenants pay their rent.

We have put together this fast guide to dealing with arrears to assist you in staying on top of rent payments and ensuring you do not end up with any rent missing.

Our lease extension experts can guide you through with efficiency.

Record payments

Tenants must keep a record of when rent payments are due and when they have been paid.

According to the Landlord and Tenant Act of 1985, the landlord must supply a rent book or other comparable document for use to the premises “when a tenant has the right to occupy premises as a residence in consideration of a rent due weekly.” But for tenants who make monthly rent payments, we advise you to follow a similar procedure.

If it becomes necessary to initiate possession procedures, you must give your landlord and the court an account of rent.

Contact your tenant

If your tenant doesn’t pay the rent when it’s due, we suggest getting in touch with them the day after it’s due to remind them of the payment’s deadline and request that it be made right away
If tenants don’t return your calls, texts, or emails and/or the rent is still owed, get in touch with them once again
Your letter should

Verify the amount owing and request that they pay it right away, or get in touch with you if they are unable to do so and need more time or want to work out a repayment schedule
Make sure that all upcoming payments are made on schedule and in full.
Describe the possible consequences of unpaid debts continuing to accumulate and/or not being paid.

Contact the guarantor

If your tenant has a guarantor, you should get in touch with them to let them know that a rent payment has been missed and ask them to make a payment. This depends on what is specified in the leasing agreement.
Once more, explain to them what will probably occur if arrears are not paid and/or are allowed to accumulate.
In many circumstances, the guarantor will answer if the tenant doesn’t.
We advise getting legal counsel about your rights and what steps you can take to regain control of your property if rent isn’t paid for more than two months.
Notwithstanding the complexity of the regulations governing landlord-tenant relationships, you must be informed of your rights and uphold your obligations.

Landlord insurance for rent arrears

To protect themselves from tenant debt, many landlords decide to purchase a specific coverage designed for landlords. In addition to paying the legal costs incurred in recouping delinquent rent.
Although landlord insurance cannot make your tenants pay their rent on time, it can provide you some comfort in knowing that the costs of going to court to recover unpaid rent are covered.
For further questions related to lease extensions and property, contact one of our experienced chartered surveyors at Leasehold Valuations.