Flatowners advised to extend leases

PUBLISHED: 12:43 03 February 2009 | UPDATED: 10:25 10 June 2010

EXMOUTH'S flat owners with long leases are being urged take advantage of lower property values and extend them.

EXMOUTH'S flat owners with long leases are being urged take advantage of lower property values and extend them.

The advice, by The Law Society of England & Wales, says that leases should be extended now, as the property value is a very significant factor in determining the cost of extending the lease or buying the freehold.

Paul Marsh, Law Society President, said: "Flat owners could actually benefit from the lower prices in the market.

"Most leases run for 99 years, but once they have less than 80 years left to run the cost of buying a lease extension increases significantly. However, it is possible to extend the lease and it is cheaper to do so when the market values are low, as the cost of extending is partly determined by the value of the property."

He warned that delaying could lead to a 'double whammy': "When property prices go up and the length of time left on the lease has gone down, it will be more expensive to extend it.

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