If you own a home then you have the right for extension of lease by using ninety years. This residential lease extension right is provided to all flat proprietors in the event that they satisfy the criteria. Alternatively, you may also cooperate with other flat proprietors in building and purchase the freehold.
What are the qualifying criteria?
The primary ones are as follows however it ought to be mentioned that there are some of the exceptions:
The flat ought to be held beneath a long lease i.e. it was at the beginning granted for a time period of more than 21 years
The flat must be owned by you for more than two years. This time period starts at the time of registry.
Reason for extension of lease
Lease is a wasting asset. As the duration of the lease reduces so does its cost, therefore, particular factors to undergo in thoughts are:
You'll pay extra to extend your rent in case your lease term has less than 80 years left.
It's really helpful to go for extension of lease before your lease reaches the specified limit.