Posts Tagged ‘Basics’
The Basics of Lease Extension
If you live in a flat, then it is likely that you will be living there on a lease. When you moved in, you should have been made aware of how long the lease had left to run as well as given information as to who owns the freehold of your building. If you are a leaseholder, then you are able to extend your lease by up to ninety years.
Lease extension is a provision laid down by the 1993 Leasehold Reform Act (as amended). It allows tenants to apply for a leasehold extension that is charged at a peppercorn rent – which essentially means that you will get the extended lease rent free. The original term of your lease will be added to the extended version.
There are several reasons people might choose to go for a lease extension. One is that the current lease is about to expire but you want to stay in the property beyond the expiry date. Another reason to apply for leasehold extension is because it is easier to sell properties that have longer leases left on them, so if you are thinking of selling a property that came with a lease, this could be a good option.
When you apply for lease extension, you have to serve notice to your landlord to inform them that you are taking advantage of your rights as laid down by the 1993 Act. You will also be responsible for your landlord’s professional fees (such as a solicitor), so make sure you are prepared for this.
How To Invest Money – Wealth Building Basics
Saving money is usually the starting point for most people who want to be financially free. However, after the art of saving has been perfected, you will notice that your money is not growing as fast as you would like it to. Suddenly interest rates start to make sense. You will automatically start shopping around for where to invest your money for the best return.
If you are able to invest your money at 5%, then your money should double every 20 years, while at an interest rate of 20%, it will double every 5 years. You therefore need to choose a rate of return that is in line with your overall financial goals. In addition, you need to determine how much you can actually afford to invest so that your money can grow as planned.
You can choose to invest for the short-term, medium-term, or long-term. Whatever term you choose, make sure that you have an emergency fund that is easily accessible in order to ensure that your investments grow uninterrupted.
Determine the level of savings above which you can begin to invest, the investment period, and then choose your desired rate of return. Keep in mind though that for some investment vehicles like mutual funds, an initial minimum is required.
To build your confidence, you can start with low risk investments like government securities for which the rate of interest may be low, but the return guaranteed. The idea is to lock up money for at least a year to prove to yourself that you can live without it. Next do your research for investments that pay higher interest rates. Seek professional advice before you invest in the stock market, and acquaint yourself with relevant knowledge of how stock markets work.