Welcome to Eastons
e.g Ewell, Epsom, Tadworth, KT20
Block Management
Lease Extensions
Lease extensions are carried out by making use of the provisions of the Leasehold Reform, Housing and Urban Development Act 1993 which allows for a statutory 90 year extension on the same terms as the existing lease for the market value of the lease extension.In very modern flats, sometimes the lease length can be as much as 999 years and so the idea of needing a lease extension is not one that springs to mind, however, for older leases and some modern leases, where leases may be much lower, there is sometimes a need to extend the lease.
The primary reason for the lease extension is that once the remaining term of a lease drops below 80 years, the cost of an extension of the lease rises by what is called the ‘marriage’ value. For the leaseholder, this equates to a substantial increase in the cost of a lease extension so we would always advise extending before the 80 year threshold.
The other important reason for extending a lease is that leases of shorter duration, i.e. less than 60 years, can prohibit or make difficult the sale of a property because banks are often reluctant to lend against the shorter term lease, so you should give consideration to extending before the 60 year threshold also.
