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What to Do When Wanting to Extend Your Lease at a Price that’s Within Your Budget

Posted November 7, 2012 by Matthew Hanks to Finance 1 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

When renting a house or premise you are entitled to know how much cost you need to pay to get you started. You will also be informed of the duration of the contract for the property. The law may also provide you help if you need to extend your contract with the landlord. This maybe based on certain factors like the number of years you have stayed as a good tenant. But it is important to make sure that you are currently paying today’s market price to extend your rental agreement.

Before you apply for an extension, you have to check your qualifications first. Sometimes it is required that you have stayed for a minimum of 2 years in the residence before an extension is approved for you. In certain situations like when your lease duration has just ended, you cannot apply for an extension. When the other leaseholders has already set for enfranchisement of the said property or when your lease was granted with less than 21 years, you may not get an extension after the said years of lease. If you need to extend your lease hopefully within you budget, you may consult a lawyer for proper lease extension request documentation. It is imperative to check the paperwork so that you will know if there are additional, penalty fees or deposits involved in your agreement.

When applying for lease extension, make sure to keep a freeholder to be in your side and will cooperate with the proceedings of the application. You will also take into account your financial capabilities before you agree on an extension. It may take a long time to get the process done if the freeholder is less interested about the idea.

To formalize the whole procedure in requesting for lease extension you may try to do the following tips.

  • Talk to the owner of your plans to extend your lease

You can set an appointment and tell him about your plans if you may need to stay for a couple of years or expand the property. Make a good relationship with your landlord and an open communication to make you feel at ease when speaking. Make sure you come up with a certain amount of lease that is within your projected budget.

  • Issue a lease extension document

This is a formal document that will inform the landlord about your request and it also outlines the possible lease premium you may need to pay. If he or she is willing to give that power to you then a response will be sent to you immediately. But if it is the other way around then a statutory period will occur in 2 months right after the unattended counter notice from the freeholder.

  • Consult your solicitor

If the negotiation for your extensions did not turn out the way you expected and there is less willingness on your freeholder’s side, you may ask advice from your solicitor. He or she may be able to provide you the best idea on how to persuade and get your landlord’s interest about your request.

You must consider the remaining period of your stay in the premises before you request an extension. Usually before any freeholder will approve a tenant’s request for an extension there may be a reversionary interest depending on how many years left in the contract. You must consult a lawyer to give you an idea on how much it would cost you to make the extension and the process all along. The cost of extension may be according to the yearly rate you are paying or the current interest given and the recent value of the property in the market place. The payments paid or the request of extension and other legal costs may not be shouldered by the tenant alone but the landlord as well.

It is always advised to get hold of a professional’s knowledge when it comes to legal documentation. Lawyers, solicitors, surveyors and other experts in land ownership or leasing can provide the best option on how to deal with the problems involving your home property whether you want to purchase it or request a lease extension.

About Matthew Hanks: Valerie is a financial professional who specializes in lease management. She is also a writer who publishes articles about finance tips. Her works for crazypayday.co.uk

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