A statutory lease extension adds 90 years to your lease in return for a one-off payment to your landlord. As leasehold properties are effectively wasting assets that reduce in value by the day, it often makes sense to extend leases sooner rather than later. HPLP can help you.
The Benefits of Extending Your Lease
There are two primary benefits to extending your lease:
- Protecting your investment: Your leasehold property loses value each day the lease becomes shorter. A lease extension will result in an increase in the value of your flat.
- Easier sale: As the number of years left on a lease decreases, your lease becomes harder to sell. This is because most lenders do not accept short leases. They may also expect a substantial discount on the purchase price. Extending the lease overcomes this issue.
The cost of extending your lease rises significantly when the current lease drops below 80 years – even by a day. So, if your lease has 80 years or more to run, act now and pay a reduced premium.
Does My Flat Qualify?
If you are considering a lease extension, the first two questions you need to ask are:
- Have I owned my flat for at least 2 years?
- Is it a "long lease" – meaning, was it originally granted for more than 21 years?
BRIEF GUIDE ON HOW TO EXTEND YOUR LEASE*
SECTION 42, Leasehold Reform Housing and Urban Development Act 1993
Your Notice of Claim
The process commences when your notice is served on the landlord, in which you offer a premium to the landlord in return for your lease extension. Once the notice is served you become responsible for your landlord's "reasonable" legal and valuation fees for dealing with the claim, and he or she may instruct a surveyor to inspect the building to prepare a valuation for the "counter notice."
Landlord's Counter Notice
Your landlord has just over two months to reply to your notice with his or her "counter notice." His or her counter notice will either accept your claim (or deny it) and is likely to counter offer a premium that is likely to be higher than what he or she might ultimately agree with you or what might ultimately be determined.
Negotiations With Landlord
You will then have between zero and six months within which to negotiate the premium and terms of the new lease with the landlord. If it is not possible to reach an agreement, we can also assist you to apply to the Leasehold Valuation Tribunal for a determination.
Grant of New Lease
Once the premium and terms of the new lease are agreed or determined, you have a further zero to four months to complete the lease extension and pay the premium and costs. The solicitor conducts all conveyancing work to ensure the new 90-year lease is legally completed and registered at the Land Registry.
Why Choose HPLP?
Advising on lease extensions requires specialist knowledge of the law. Many firms do not have this knowledge. Mistakes can happen if the correct procedures are not followed.
Our solicitors are recognised experts in handling lease extensions. We successfully complete several lease extensions every day for tenants and landlords. Our work is recognised by Association of Leasehold Enfranchisement Practitioners (ALEP) of which we are accredited members and by LEASE, the government-funded website.
We also offer you free initial advice of up to a half-hour and a fixed fee estimate so you know what you will be charged should you choose to pursue a lease extension with us.
To learn about your rights and options for pursuing a lease extension, contact our firm to speak with Ash Oberoi to discuss your situation in greater detail.
*Please note, the above is just a brief guide of some of the steps and is not, nor is it intended to be, legal advice. For a more detailed guide with all the steps and procedures and for more advice please contact us directly.