Lease Extension
This is governed by the Leasehold Reform, Housing and Urban Development Act 1993, as amended by the Commonhold and Leasehold Reform Act 2002.
To qualify for a lease extension
In order to extend your lease, you must have a lease which:
- When it was granted, was for a term of over 21 years. It does not matter the term remaining on the lease now
- You must have owned this lease for a minimum period of two years.
Procedure for a lease extension
Typically the whole lease extension process can take 6-9 months but be advised that there are strict time limits which your solicitor will be able to advise you on. In summary, the procedure is as follows:
- The tenant serves (via his solicitor) a prescribed form of notice on the Landlord(s), stating a realistic figure which he or she is prepared to pay for the lease extension. You should be aware that you may be asked by the landlord for 10% of the figure in your initial notice as a deposit.
- The landlord replies with a Counter-Notice within two months which will state the price at which he is prepared to sell.
- There is then a period of six months for negotiations, with a referral to the Leasehold Valuation Tribunal to determine the figure if agreement on the premium can not be reached.
A lease extension can be a complex process and the legal procedures are inflexible. Specialist advice from both expert surveyors and solicitors is strongly recommended.
For an initial discussion please contact one of our team and see our list of enfranchisement solicitors.