Lease Extension Process
Tenants of certain long leases of flats have the right to be granted a lease extension. This right was introduced by the Leasehold Reform, Housing and Urban Development Act 1993.
What is a lease extension?
Whilst it is often referred to as a right to a lease extension, it is actually a right to be granted a new lease for a new term, which is calculated by adding 90 years to the term than remaining of your lease.
The rent is effectively wiped out, being reduced to “a peppercorn”. Other than this, the terms of the lease remain the same unless amendments are agreed by the parties.
Who is eligible for a lease extension?
If you have been the owner of a long residential lease (i.e. a lease granted for a term exceeding 21 years) whose landlord is not a charitable housing trust providing the flat for the purposes of its charitable functions, for at least two years, you should qualify for a lease extension. There is no necessity for you to be resident in the property.
Humphries Kirk LLP can offer you advice and support throughout the lease extension process to include:
- Ascertaining your entitlement;
- Obtaining full details of the Landlord and other persons on whom notices should be served;
- Preparation and service of notices;
- Dealing with the landlord’s response;
- Dealing with your mortgagee;
- Agreeing the terms of the new lease;
- Completing and registering the new lease.
- Making and dealing with any First Tier Tribunal applications.
What is the cost of extending a lease?
A premium is payable and the tenant is also liable to meet the landlord’s legal and surveyors costs. You will require the services of an appropriately qualified surveyor to calculate the premium that you should offer; this is then negotiated with the landlord’s surveyor.
This can be a complex process with strict timelines and various possible stumbling blocks along the way. It is, therefore, most important that you are fully advised by an expert lawyer from the outset.