Our specialist team of lease extension solicitor can help you get the lowest premium from your freeholder. Call us on 0203 909 8399 or email us email@example.com to get professional advice on a lease extension of a flat or a house.
Increasing numbers of properties are built and sold on a leasehold basis as opposed to freehold or commonhold. This is particularly the case with flats.
With a leasehold property, you are basically purchasing the rights to live in a property for a specified period (lease term). Modern flat leases typically tend to be for 99 to 125 years. Although this may seem like a long period of time, you may consider the advantages of extending the term of the lease sooner rather than later. The value of your flat is likely to be increased significantly by a properly negotiated lease extension. If your lease has 80 years or less remaining, then it is best that you apply to extend it.
The Leasehold Reform Housing and Urban Development Act 1993 (as amended) provides the leaseholders with a right and opportunity to extend their lease once they have owned the property for at least two years. Although the right is often referred to as a right to extend the lease, it is really a right to a new lease for a term equal to the unexpired residue of the existing lease plus 90 years. The rent under the new lease will be peppercorn ground rent, which is the same as being rent free.
A premium is payable by the tenant for the grant of the extended new lease.
The right to a lease extension is subject to certain criteria and some of the prerequisites are that the existing lease must be long i.e. granted for a term exceeding 21 years and the tenant must have owned the lease for at least two years and the tenant cannot be a business or commercial tenant.
You cannot extend your lease if:
- The landlord is a charitable housing trust and the flat is provided as part of the charity’s functions
- The building in which your flat is located is within a cathedral precinct, or if it is owned by The National Trust
Do you need help extending your lease?
A leasehold extension application process involves a complex area of law. It can be time-consuming with strict time-frames and deadlines. It is critical to have solicitors who really understand what they’re doing. We have a team of experienced solicitors who specialise in the field and can handle your lease extension from start to finish. Call our property department on 0203 909 8399 or email us at firstname.lastname@example.org We have a specialist lease extension team of solicitors and surveyors and we provide:
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Frequently Asked Questions
How long does it take to extend your lease?
The length of time it takes to extend a lease is determined by several factors, including the number of parties involved, as well as agreement on the premium and terms.
A statutory lease extension has a strict timetable that must be followed, and it usually takes several months from the time the notice for a lease extension is served to the time the case is completed.
Because the premium and any amended lease terms are normally agreed upon at the outset, lease extensions outside of the official system tend to go more rapidly.
When should I extend my lease?
There is no single answer, but we recommend that you extend your lease before the remaining period falls below 80 years. When the remaining term of a lease is between 80 and 90 years, most individuals will try to extend it. This could be because they intend to sell the property in the future and don’t want the lease to become unmortgageable, or they want to take advantage of a lower premium by extending the lease before the term gets any shorter.
Why should I extend my lease?
A leased asset depreciates over time. The value of the lease declines as the term expires, and the cost of extending the period increases. Because a mortgage provider may be hesitant to provide money against the short term, selling a property with a short lease can be challenging.
If you apply for a lease extension through the statutory procedures, your ground rent will be reduced to a peppercorn (nil). A lease extension is sometimes viewed as an opportunity to update outdated clauses in previous leases.
Can I extend my lease?
If certain criteria are met, you may be eligible for a legal right to renew the lease on your flat or house. A lease extension carried out in this manner is referred to as a statutory lease extension.
Even if you do not qualify for a statutory lease extension, you may be able to arrange a lease extension with your landlord on an informal basis.
What is a lease extension?
The procedure through which a leaseholder extends the length of their lease is known as a lease extension. There are leases for both flats and homes that can be extended.