Table of Contents
To request a lease extension, submit a formal letter containing all the pertinent details your landlord needs to make a decision. The letter should include: Your name, current address and contact information. Date the lease extension request is submitted.
Can a landlord refuse to extend a lease?
If you decide to try to negotiate a lease extension, there are no rules and your landlord could refuse to extend your lease, or set whatever terms they like.
How do I ask my landlord for more time?
Ask your landlord in writing (as far in advance as possible) for a few extra days. Explain your difficulties and emphasize (if you can) that they are only temporary. Offer (if at all possible) to pay at least some of the rent on time.
Do I have a legal right to extend my lease?
You usually only have the right to extend your lease by 50 years, rather than 90 years with flats. The freeholder could grant more than 50 years if they want, but it’s up to them. The law is even trickier here than with flats, so seek advice from a solicitor with experience in the area.6 days ago.
How long does a lease extension take?
The entire leasehold extension process normally takes from three to twelve months but it can be made quicker with professional help from efficient valuers and solicitors. The first thing to establish is that you are eligible for an extension.
What is the marriage value on a lease extension?
As described above, the marriage value is the increase in the value of the property following the lease extension. It reflects the increased market value of the longer lease.
What is a good excuse for not paying rent?
Lots of excuses have to do with being too busy, such as not being able to swing by the leasing office or not having enough time to buy a stamp. Other excuses center on the money going elsewhere. Examples include paying for a funeral of a distant relative, sending their teen to prom or paying other bills first.
How do you politely ask for rent late?
The most polite way to ask for payment is to ask before anyone is late! When you send a reminder a few days before the rent is due, you can be very polite. Sending a reminder about an upcoming payment rather than a request for a late payment is always going to be a more welcome message.
How do you tell your landlord you’re going to be late?
Dear [Landlord’s Name], I’m writing to inform you that my rent payment will be late this month. I was recently laid off from my job and won’t be able to make the payment on time. I have applied for unemployment benefits, but it may take up to 2 weeks before I receive my first payment.
Who pays lease extension?
If the lease is short and you are paying under the market value of what the property would be worth with a long lease then you should pay the premium to extend the lease. If however, you are paying the current market price as if the property had a full lease then the seller should pay for the lease extension premium.
How does lease extension work?
In brief, the Act provides the leaseholder with a right to extend the lease term by a further 90 years and extinguishes the ground rent. This is known as a statutory lease extension. Furthermore, as the term of the lease gets shorter, the premium payable for the extension increases.
What is a Section 42 lease extension?
A Section 42 Notice is a formal request from a leaseholder to the freeholder or landlord (or both) and any other appropriate party to extend their lease on a property. This provides a leaseholder with an extension of 90 years on top of the remaining lease term and a ground rent reduced to zero.
Why is it so expensive to extend a lease?
The cost of extending a lease relies on a concept called relativity, which describes how the value of the home drops as the lease term runs down. The lower the relativity, the more it costs to extend the lease. And that means that leaseholders who pay to extend their leases could be paying thousands of pounds too much.
Does lease extension add value?
A lease extension for a flat can dramatically increase its value, even for flats with long leases. However, for leases above 130 years, any extra years will not add any value (See Savills Graph below).
Is a 999 year lease as good as freehold?
Newly-created leases can be anything from 99 or 125 years to 999 years. A 999 year lease is effectively as good as freehold, and there can even be some advantages to owning some properties this way, rather than under freehold (see below). However, shorter leases become problematic sooner than you may think.
How long is a lease extension valuation valid for?
Under the formal route this will be fixed at 90 years on top of your current lease term, however informally it can be for anything from 1 to 999 years. These rate are applied by your surveyor to calculate the Existing Freehold Valuation.
How is lease extension premium calculated?
This is a term that describes an increase in the value of the property because of the lease extension. The landlord usually takes 50 percent of the marriage value for a lease that is below 80 years.
Is a 99 year lease long enough?
The majority of residential leases used to be for a term of 99 years, but more recently leases on modern purpose-built flats have been for 125 years or longer. The simple answer then is yes, there is no problem in principle in buying a flat with a short lease provided that its price reflects this fact.
