A lease extension is buying more air time
So called short leases are talked down by lenders and estate agents. Leaseholders with 60 years on a lease are encouraged to think it is devalued.
A lease extension is calculated on the same basis as a share of the freehold. It is NEVER preferable to buy a lease extension if there is any possibility of owning the freehold because lessees are still on the same ‘board game’ they still have a freeholder. They still have the power only to re-act not to initiate.
Whilst the building does not present challenges the system does not seem onerous, but as soon as there is a major repair, its disadvantages and stupidities become clear.
Lease extensions are granted automatically when leaseholders buy the freehold. An extension alone is a poor alternative.
Firms offering to negotiate lease extensions for leaseholders are doing them a great disservice. A lease extension still leaves leaseholders in the power of the freeholder.
View a copy of the Leaseholders Guide by Shula Rich