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Our Residential Property solicitors advise and deal with residential lease extensions.
When you purchase a leasehold property, you acquire the right to live in the property for a set period of time. For example, the lease could be granted for a period of 99 years or 125 years, or other period, as agreed between the parties at commencement of the lease, and as the years pass, the term of the lease reduces. This can make it harder to sell or lend against the property.
The statutory right to request a lease extension generally starts once you have owned the property for two years. If you are thinking of selling a property which has a relatively short lease, you may wish to consider obtaining and completing a lease extension prior to marketing the property, as this may make a difference to the market value.
There are two ways of extending a lease – an “Informal” route by way of an agreement between you and the Landlord/Freeholder or a statutory lease extension under the Leasehold Reform Housing and Urban Development Act 1993. The Informal Route involves settling the amount to be paid to the freeholder by way of negotiation between the parties.
Our Residential Property lawyers can guide you through your lease extension if you have already agreed terms of the lease extension and premium to be paid.
However, if an agreement cannot be reached it will be necessary for you to proceed by way of a statutory lease extension which involves obtaining a valuation from a suitable surveyor and the service of a notice as required by legislation. The statutory route can include a referral to the First Tier Tribunal (Property Chamber) if the terms cannot be agreed and we would advise you seek specialist legal advice.
For commercial lease renewals and Landlord and Tenant service of notices, please contact our Commercial Property lawyers.
W Davies Solicitors (Registered Office)
Acorn House
5 Chertsey Road
Woking, Surrey
GU21 5AB
W Davies Solicitors – London Office
Hamilton House
1 Temple Avenue
London
EC4Y 0HA
