What is the extension of lease?
To understand the term lease extension, we first need to know what a lease contract is. Whenever the owner gives his property or anything on rent to another person, a contract is signed between them and that is known as the lease contract. The owner is known as the lesser and the tenant as the lessee. To extend the duration of lease is known as lease extension and this is only beneficial if you extend it while you have 90 or more years remaining.
What are the benefits of this extension?
It is easier to extent the lease with 90 years of ownership still remaining or else those properties with shorter lease duration remaining are less easily extended.
· Do you wish to get rid of the ground rent? This is only possible if you extend the lease with still 90 years or more remaining. Once it is down to 80 years, the chances of extension get tough.
· You can avoid the payment of brokerage commission by extending the lease of the property.
· It is good for your business or your daily life. As you are living in a place since a long time, choosing to stay here would be a good choice.