Lease Extension Solicitors
Our experience in successfully negotiating and completing lease extensions means we are able to advise on procedure, complete the conveyancing and importantly allow you to relax knowing your case is in safe hands.
We deal with all aspects including:-
- Confirming the outstanding period left on the lease;
- Draft and service a s.42 Notice as required by the Leasehold Reform Housing and Urban Development Act 1993;
- Advise you as to the premium which will be payable to the landlord;
- Dealing with any counter-notice served by the landlord;
- Registering the new lease at the Land Registry.
You will be eligible as long as you have been the registered owner of the property for at least two years, and if the original lease was for more than 21 years.
Your solicitor will be able to confirm this as part of their initial enquiries.
Yes – providing you satisfy the eligibility criteria as detailed above.
There are several reasons- the marketability of the property is certainly one of them. As a rule, mortgage lenders are reluctant to grant loans to buyers if the property has only a short lease. This could rule out most potential buyers if you come to sell.
Extending sooner rather than later gives you peace of mind- and helps to avoid the dreaded ‘marriage value’ (see below). It also means that you will be granted a new lease with rent reduced to a ‘peppercorn’ (and which in reality is usually never collected.)
You (or your solicitor) can approach your landlord and deal with the extension on an informal basis. Alternatively, your solicitor will follow the procedure laid out in the Leasehold Reform Housing and Urban Development Act 1993 (LRHUDA). This sees a formal Notice being served upon the landlord, which includes confirmation of the premium you are looking to pay. The landlord is free to serve a Counter-Notice and if they do, a period of negotiation usually follows. Your solicitor will undertake the negotiations for you.
The term ‘lease extension’ is a slight contradiction, as you are actually granted a new lease for the agreed term.
Once the legal formalities have been completed, your solicitor will register the new lease at the Land Registry.
There is no one size fits all figure; your solicitor will confirm this for you, taking an opinion from a professional valuer so that an accurate cost can be confirmed. Generally speaking- the shorter the lease, the greater the cost.
One thing to be aware of is the flat’s ‘marriage value.’ This is a cost which applies when renewing a lease that has fewer than 80 years remaining. As renewal increases the value of the property, you will be required to pay 50% of the increase to the landlord- this is known as the ‘marriage value.’
It is possible to take the matter to a Tribunal, but this is not a common occurrence as most cases are dealt with amicably.