Lease extension benefits

Here are some benefits of extending your lease:

  • You can extend your lease for an additional 90 years on top of your unexpired term, meaning that your flat is easier to sell and get a mortgage;
  • Your ground rent is reduced to nil (referred to as a peppercorn rent) from completion of the lease extension;
  • A lease is a wasting asset, which means that the shorter the term becomes, the less it is worth, so a longer term inevitably increases the value of the flat;
  • Extending your lease will increase the value of your property if you wish to sell, a longer term is more appealing to potential buyers;
  • Lenders are becoming more conservative on lending against flats which have short leases. Most lenders will refuse to lend where a lease drops below 55 – 60 years. This means that you may have difficulty re-mortgaging yourself. And equally, if you come to sell the flat, then any prospective buyer may be unable to obtain a mortgage over the flat. That means that your flat may become unsaleable.
Rosebery Housing is a trading name of Town and Country Housing, which is a subsidiary within the Peabody Group and is a charitable Registered Society under the Co-operative and Community Benefit Societies Act 2014, registered with the Financial Conduct Authority No. 30167R. Registered office: Town and Country Housing, Monson House, Monson Way, Tunbridge Wells, Kent, TN1 1LQ. Rosebery Housing provides housing and repair services to customers in Surrey and West Sussex, supporting sustainable communities by forging strong partnerships, working closely with local customers and creating local jobs.

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