BONALLACK & BISHOP – SOLICITORS IN SALISBURY –  PRESS RELEASE 
22nd February 2011

Now is the right time to extend your lease

Following the drop in local property prices over the last few years, it may be the right time for flat owners to think about extending their lease, according to Salisbury Solicitor Georgina Walters.

Most people still don’t realise that if they have owned a residential flat for at least two years on a lease that was originally granted for at least 21 years, they will probably qualify for the right to extend the lease by up to an extra 90 years. What's more, it's not even necessary for the flat owner to have lived in the flat during that two-year period.

Georgina, who heads up the property law team at Salisbury law firm Bonallack and Bishop and deals with hundreds of lease extensions nationwide every year, commented, “Anyone who bought a flat built in the 1970s or 80s should really have a look at extending their lease as soon as possible. Often flat owners look upon the cost of leasehold extension, even if they're aware of the possibility of extending the lease at all, as an expense they can put off, but doing so could prove very expensive. Once the remaining term of the lease drops below 80 years, the cost of extension rises significantly – so the sooner you extend your lease, the cheaper it will be.”

Georgina continued, "Flat owners need to remember that they don't own their home outright. Taking on a lease simply means that you are paying for the right to live in a property for a limited period of time. Adding another 90 years to your lease will significantly increase the value of your property and usually enable you to reduce the ground rent to almost nothing. There are probably thousands of flat owners in the Salisbury area who simply don't realise that they can extend their lease and who are missing out.

“What's more, now is the ideal time to extend your lease. Reduced house prices make extending your lease cheaper. Putting your lease extension off is simply going to cost you more – both as your lease gets shorter and when house prices finally begin to rise again.”

Clive Gregory of Salisbury estate agents McKillop and Gregory commented, “Extending your lease not only makes any property much more saleable but it may have an impact on the value. Unfortunately many people are either unaware of or don't consider the advantages of extending a lease until they actually come to sell their flat – when any potential delay to the sale caused by the lease extension process often puts them off lease extension. I would recommend that anyone with a leasehold flat considers the advantages of lease extension, especially if their lease has either not yet dipped below 80 years or has less than 60 years remaining – in which latter case most lenders will be reluctant to offer a mortgage to any potential buyer.”

For specialist lease extension advice, contact Georgina on 01722 422300, email her or visit our  Leasehold Extension microsite.