Don’t Wait Until It’s Too Late To Extend Your Property Lease
Here’s How Leasegevity Can Help
If you’re paying a mortgage on your property, you might think you own it…
But if you own your property on a leasehold basis, it’s important to remember you are technically renting that property.
As a leaseholder, you rent your property from the freeholder (ultimately your landlord) for the period of the lease.
Because most leases are issued for periods of 99 or 125 years and the cost of the ground rent often seems incidental in the short term, it’s easy to forget about a lease or take it for granted.
But by entering into a leasehold agreement, you agree the freeholder retains the right to potentially take the property should you allow the lease to expire.
Instances where a leaseholder loses a property due to an expired lease are rare. But it is a risk.
And, more immediately, if you allow a lease to run too close to expiry, it can present a number of problems.
1.The Longer You Wait, The More You’ll Pay
The most immediate risk of letting your lease run down is the increasing costs you’ll incur in doing so.
You see, the closer you come to the end of the lease, the more expensive it will likely be to extend.
It’s why it pays to extend your lease at the earliest opportunity, rather than putting it off as most people tend to.
In the vast majority of cases, a freeholder will be happy for you to extend your lease.
And here at Leasegevity, we make the process very simple for you. We take care of all the technical details and paperwork, so you don’t have to.
We’ll even find and contact the freeholder on your behalf.
In fact, if you believe you might need to extend your lease, you can arrange a free consultation with us today – just give us a call on +44 (0) 300 400 3279
2.The Shorter The Lease, The Harder It Is To Get A Mortgage
In addition to your costs increasing…
You also risk decreasing the value of your house or flat.
When it comes to selling a property, shorter lease periods are much less attractive to potential buyers.
As you would expect, a buyer will look to minimise their costs and naturally look for properties with longer lease periods.
A short lease on a property can even make it difficult for a buyer to get a mortgage at all.
So, to avoid your lease affecting the sale of your property, get in touch with us here at Leasegevity and we can help secure the value.
3. Worst-Case Scenario: You Could Lose Your Property
Like we said, instances where a lease expires and a freeholder takes back ownership of the property are rare.
But it does happen.
And it’s a risk you run if you don’t manage your leasehold property appropriately.
It often comes as a shock to many clients. Despite the fact they’ve been paying a mortgage to ‘own’ a property, if it’s on a leasehold basis, the mortgage only gives you ownership of the property for the duration of the lease.
Because the expiry of most leases seems far in the future, many clients we speak to forget their leasehold status and don’t check before it is too late.
It’s why we encourage you to get in touch with Leasegevity today. Thanks to our decades of experience in the market, we’re able to make the process very simple for you.
So, don’t leave it too late – get in touch today to find out if it’s time to extend your lease.
You can call us direct to arrange a free consultation on +44 (0) 300 400 3279.