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Lease Extension
What is Lease Extension?
The Leasehold Reform Act 1993 gives residential tenants the right to extend their lease.
Why should I extend my lease?
A lease is a deteriorating asset, gradually losing value. As the number of years left on your lease goes down, so does its value and it often becomes harder to sell. It may also become increasingly difficult to raise a straightforward mortgage as the term of the lease reduces. The Leasehold Reform Act 1993 gives many tenants the right to extend their lease for a further 90 years. Extending a lease is certainly something you should think about if your lease has less than 90 years to run. Beware that when the remaining lease term lease drops below 80 years, the cost of extending a lease can rise substantially.
Who can apply for a Lease Extension?
A residential tenant must own their flat for at least two years and the lease must have had an original term of at least 21 years.
What do I get?
If you decide to exercise your right to extend a lease:
- You can add on a further 90 years to your lease
- You will not have to pay any ground rent for the rest of your lease
How much does Lease Extension cost?
When it comes to extending a lease, a tenant will usually have to pay the following:
- Compensation to the landlord for the loss he suffers 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 a formal Lease Extension valuation report
- Your own solicitors' costs
- The landlord's reasonable leasehold valuation costs and legal expenses you can challenge a landlord’s costs at the Leasehold Valuation Tribunal.
What should I do first?
It's important to make sure you are prepared when planning a Lease Extension:
- You should first contact a specialist solicitor to help with the legal documents.
- You will usually then need to appoint an experienced chartered surveyor to value the proposed leasehold extension. Again it's important to appoint someone who specialises in Lease Extension valuation work. Our team regularly work with surveyors nationwide who specialise in extending leases and can assist you select the right valuer.
Contact our Lease Extension Solicitors
Extending a lease is complex and it is vital to have specialist advice. Wherever you live – our Solicitors can help. Contact us today for a FREE initial telephone consultation from an expert Lease Extension Solicitor on 01722 422300 or advice@enfranchisementsolicitors.co.uk |
