Lease Extension
Is Your Flat Losing Value?
I own a flat do I need to extend my lease?
If your lease is approaching having an unexpired term of 80 years of less you should seriously consider extending your lease. Once the unexpired term of your lease falls below 80 years the premium payable for a lease extension can increase significantly. This is because the premium payable usually continues to increase the shorter your lease becomes. You may also experience difficulty selling your flat and as the term of the lease approaches 55 to 70 years it may be difficult to obtain a mortgage.
Can I force my Landlord to grant me a lease extension?
If you have owned your flat for two years you are entitled (subject to satisfying qualifying criteria) to a lease extension of 90 years and the cancellation of the ground rent. To exercise your right a Notice must be served on your Landlord. Whilst the premium is usually negotiated between you and your Landlord, you do have a right to apply to a Tribunal to determine the premium payable if an agreement cannot be reached. It is crucial that the Notice complies with the requirements set down in the relevant legislation and we therefore recommend instructing a solicitor like us that specialises in this area of the law to serve the Notice for you.
How Much Will A Lease Extension Cost?
Before serving a Notice on your Landlord for a lease extension you need to consider whether you can afford to pay all the costs involved. There are a number of costs that you will have to pay. These are as follows:-
- The premium payable to your Landlord
- Your solicitor’s and surveyor’s fees
- Your Landlord’s reasonable solicitor’s and surveyor’s fees.
We recommend that at the outset you seek advice from a surveyor regarding the premium that will be payable for the lease extension. We can provide you with a cost estimate for our legal costs for obtaining a lease extension for you and give you an indication of the likely costs of your Landlord. This will enable you to have a clear picture of the total potential cost of obtaining a lease extension.
Please contact us for a FREE initial interview or telephone appointment to discuss your lease extension.