I can't see that you will have a problem if you add extra wire as you are thinking but there does seem to be a maximum length you can have.
I saw this in the Masterlink Manual when talking about BeoLink Active -
The cable between IR receiver and BeoLink Active must not exceed 5 metres
(supplied).
A special 15-metre low-capacity cable can be ordered, order no. 6270668.
It does not say about BeoLink Passive but I would hazzard a guess it has the same limitation!
Stoobie