Before signing to extend a lease, it is essential to know your rights and avoid common pitfalls. During negotiations, the aim is to secure favourable terms. In particular, we advise against leasing agreements that have too few years to run. Such mistakes can prove costly in the long term.
Suppose your current lease has a little more than eighty years left before it expires. In such a case, we advise you have its terms and conditions checked as a matter of priority. Under the auspices of the Leasehold Reform Housing and Urban Development Act 1993, extending a lease by ninety years for a minimal peppercorn rent may be possible.
Additionally, it is highly advisable to check any ground rent clauses. Rising ground rents can make it difficult for leaseholders to keep the property concerned yet complicate its sale.
Furthermore, personal guarantee clauses and indemnities require careful attention. Count on our help to simplify leasing agreements wherever possible, including changes of use, alterations and the complexities of full repairing and insuring leases. In the latter case, potential obligations for repairs and maintenance mean that full surveys are vital before committing oneself. An insurance policy with adequate cover is also strongly recommendable.