64. Understanding extended lease
An extended lease is a leasehold property's lease agreement that has been renewed or extended beyond its original term.
To comprehend this concept fully, consider the following points:
| Renewal or extension | An extended lease involves renewing or extending the lease agreement. This means that the lease's original term, which may have been nearing its end, is prolonged for a specified duration. The extension is typically for a substantial period, often 90 years or more. |
| Benefits of an extended lease | Extending a lease can offer several benefits to leaseholders. It provides long-term security, as it prevents the property from reverting to the freeholder at the end of the original lease. Additionally, an extended lease can increase the property's value and marketability, making it more attractive to potential buyers or tenants. |
| Leasehold enfranchisement | Obtaining an extended lease is often associated with leasehold enfranchisement. Leaseholders have the right to request an extended lease under certain conditions. This is particularly relevant for those who wish to stay in their leasehold property and avoid the challenges that may arise as the original lease approaches its expiration. |
| Lease extension process | The process of extending a lease typically involves formal notice to the landlord, negotiations, and, in some cases, a valuation to determine the premium payable for the extension. It is a legal procedure governed by specific laws and regulations. |
| Professional advice: | Understanding the intricacies of lease extensions and enfranchisement can be complex. Therefore, it is advisable to seek professional advice from solicitors or conveyancers experienced in leasehold matters. They can guide you through the process, ensuring that you meet all legal requirements and secure the extended lease under favourable terms. |
An extended lease involves renewing or extending the lease agreement of a leasehold property. It offers various benefits, such as long-term security and increased property value, and is often associated with the leasehold enfranchisement process. Seek professional advice to navigate the legal procedures associated with obtaining an extended lease.