Lease Extensions

Lease extensions are an important consideration for leaseholders.  In our experience, many leaseholders do not know where to turn to find advice on what needs to be done. It seems they are unsure whether they need a Solicitor or a Surveyor.

lease extension kentIf your lease has more than 80 years remaining then  lease extensions will be considerably cheaper than will be the case for shorter leases. The reason for this is that once a lease falls below 80 years, the leaseholder is obliged to pay a sum known as “marriage value” as part of the lease premium. This can increase costs significantly.

Regardless of the current unexpired term, the cost of  lease extensions will increase with every year that passes. It therefore makes good financial sense to investigate extending your lease without further delay.

We provide a service where we will orchestrate the lease extension process in conjunction with a firm of solicitors who are experienced in this field.

The first consideration is to understand whether you are legally entitled to extend your lease. On the basis that the original lease was for a period in excess of 21 years and providing you have owned the property for a minimum of 2 years then you will likely qualify.

Assuming you qualify you will presumably want to know what a lease extension would look like? The extend your lease kentlease extension via the formal route will result in you receiving an additional 90 years on the current lease (i.e. if you currently have 60 years remaining then this would be increased to 150 years) and the ground rent currently payable under the terms of your lease would be removed entirely.

The next step is to get in touch with us in order that we can arrange for a valuation of your premises so that we can formulate the figure that will form part of the notification that will be served on your freeholder.

Once they are in receipt of these Notices, they have a period of two months within which they must respond and agree to the lease extension or make a counter offer requesting that you pay a different premium for your lease extension.

Following a counter notice from your freeholder there is normally an element of negotiation between surveyors and in many circumstances this results in agreement being reached. In the event that agreement cannot be reached then you have recourse to the Tribunal (LVT) who will determine the correct premium to pay of your lease extension. Regardless of how the process transpires, we shall be there to guide you through.

Once the premium is finally agreed then your nominated Solicitor would complete the various legal works and register the revised lease length with the Land Registry.