In standard practice, the extension length is fixed at which value?

In standard practice, the extension length is fixed at which value?

• A. 90 years
• B. 75 years
• C. 80 years
• D. 100 years

Answer: (A)

When a lease is extended on a leasehold property, the standard length added to the term is 90 years. This means the new lease will run for the remaining years left on the current lease plus 90 years, giving the property a very long, stable lease. The reason this is the typical practice is to protect the value of the property and keep lending straightforward; lenders generally prefer long leases because they reduce the risk of the lease dropping below levels that can affect mortgageability. While bespoke arrangements can specify different lengths, the conventional approach used in practice is a 90-year extension.

When a lease is extended on a leasehold property, the standard length added to the term is 90 years. This means the new lease will run for the remaining years left on the current lease plus 90 years, giving the property a very long, stable lease. The reason this is the typical practice is to protect the value of the property and keep lending straightforward; lenders generally prefer long leases because they reduce the risk of the lease dropping below levels that can affect mortgageability. While bespoke arrangements can specify different lengths, the conventional approach used in practice is a 90-year extension.