PROS AND CONS OF LEASEHOLD EXTENSION



Pros
  • Cheaper than Collective Enfranchisement.
  • Enables you to extend your lease for a further 90 years without the cooperation of the other leaseholders.
  • Your property becomes more marketable.
  • A more secure family inheritance.

 

Cons
  • The Freeholder still owns the freehold.
  • The Freeholder may be able to terminate the new lease within 12 months of the right being exercised or during the first five years of the new lease. He can only do this if he asserts to the Leasehold Valuation Tribunal that the property will be redeveloped. Nevertheless, the compensation provided would most likely outweigh the cost of the lease extension.