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The cost of extending a lease is based on a set formula that takes into account: The value of the property. The number of years left on the lease. The annual ground rent. The value of improvements leaseholders have made to the flat. Other factors like investment returns.
Negotiating your lease extension starts with the service of your notice, which must contain a reasonable offer for your lease extension premium. The freeholder has two months to respond with their counter notice, and their offer doesnt have to be reasonable. Many use a really high offer as a shock tactic.
The premium payable to extend a lease is calculated using four figures; the current market value of the property with a long lease, the start date of the lease, the original lease term (this is commonly 99, 125 or 999 years) and the annual ground rent payable.
Negotiating your lease extension starts with the service of your notice, which must contain a reasonable offer for your lease extension premium. The freeholder has two months to respond with their counter notice, and their offer doesnt have to be reasonable. Many use a really high offer as a shock tactic.
Cons The residual value of the car will stay the same, meaning if you want to buy the car later, youll still have to pay the residual value despite depreciation. Extending the lease may incur fees and penalties. The longer you drive the car, the more likely it will be that it will need repairs.
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If you are a tenant or a landlord, you may face the situation of negotiating a lease renewal or extension at some point. This can be a tricky process, as both parties have their own interests and expectations. However, with some preparation, communication, and flexibility, you can achieve a mutually beneficial outcome.
We often are asked, is a 90 year lease long enough? Although not classed as short as it is above 80 years, If you bought the property with 90 years remaining, intending to sell after 5 years or so, youll need to consider that your buyer will likely want to have the lease extended.
The residual value is also the price youll pay if you want to (and the leasing company allows you to) buy the car once the lease ends. If you extend your lease for a month, this shouldnt docHubly impact what you pay for the car, but any longer than that could have you paying more for a car thats now worth less.

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