Extending your Lease

Why should I extend my Lease?

  • The Lease term is continually reducing which may affect the marketability and/or price. Once the Lease term is under 80 years, the premium payable to the freeholder for a Lease extension substantially increases. 
  • If you are considering selling and the Lease term is nearing 80 years or under then a buyer will insist on a Lease extension before proceeding which could substantially delay the transaction or will reduce the price payable for the property.
  • The existing ground rent will no longer be payable

Why is now a good time to extend my Lease ?

The current falling property prices means that the amount you will pay to the freeholder is less in cases where the Lease term is less than 80 years. 

What right is there to extend my Lease ?

The Leasehold Reform Housing and Urban Development Act 1993 (as amended by the Commonhold and Leasehold Reform Act 2002) gives flat owners of long Leases the right to extend their Lease term subject to meeting certain criteria

How do I qualify to extend my Lease ?

Any flat owner who holds a long Lease and has owned the property for 2 or more years will have a statutory right to extend their Lease

What will be the length of the extension ?

The existing Lease term will be extended by 90 years

How much will it cost me?

This will depend on the length of the Lease term currently held, the ground rent payable and the value of the property. Please contact us to obtain an approximate cost.

What is the procedure involved?

  • Obtain a valuation from a specialist surveyor 
  • Claim notice then drafted and served on the freeholder
  • Freeholder must serve a counter notice within 2 months either accepting the offer or setting out his own price and other terms 
  • Negotiations then take place between the parties or their surveyors and failing agreement, an application to the Leasehold Valuation Tribunal is made to determine the price

For specialist advice please contact Matthew Blake.

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MatthewBlake
Partner
T: 020 8297 5808(DDI)
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