Why should I consider extending the lease on my property?
- To increase its value.
- To enable your property to be used for mortgage security (most lenders will not accept flats or houses held on leases with less than 55 years remaining on the lease and some even require no less than 75 years unexpired)
- To avoid having to pay marriage value (payable when extending a lease with a term of less than 80 years)
- To improve your property’s saleability
- To potentially remove the annual ground rent
Do I have a statutory right to extend my lease?
- The Leasehold Reform Housing and Urban Development Act 1993 allows qualifying leaseholders to extend the length of their lease by an additional 90 years and remove the current ground rent. Lease extensions can also sometimes be informally negotiated to the mutual benefit of both parties. For instance if you are going to sell your flat in the future you may not object to paying a ground rent, as this will reduce the level of premium. The Act does not allow this flexibility but it does provide the leaseholder with a backstop position
How much will it cost to extend my lease?
- The major expense is the premium payable to the freeholder to compensate for the loss suffered as a result of the lease extension (i.e. the difference between the value of his interest in the flat before and after the 90-year lease extension was granted)
- The cost of the premium calculation and additional cost if you instruct a surveyor to negotiate the premium
- Your own solicitors' costs
- The landlord's reasonable premium calculation costs and legal expenses
What happens if I can’t come to an agreement with my Landlord?
We can negotiate for you, even if we didn't provide the initial premium calculation.
Please contact us to see how we can help you.