If you wish to sell a leasehold property, you may be considering whether or not to extend your lease in order to maintain the property’s value, and make it a more attractive purchase for a potential buyer.
The first step of the lease extension process would be to make contact with your Landlord informally, to ascertain whether they will grant you an extension on a voluntary basis. This procedure would avoid the costs of complying with the formal procedure.
If your Landlord does agree to progress with an informal lease extension, they would take the step of obtaining their own valuation; for which you will be required to reimburse them.
If you are not in a position to seek an informal lease extension from your Landlord, you could obtain a formal lease extension under the Leasehold Reform, Housing and Urban Development Act 1993 for this process to be utilised, namely that you have held the property for at least 2 years.
If you do not know who the Competent Landlord of the property is, section 41 of the 1993 Act gives the Leaseholder the right to serve information notices requesting this information from your immediate Landlord, the freeholder, or anyone else with an interest in the property. Usually, the Competent Landlord is the Freeholder. However, we would recommend that you obtain independent legal advice as your representative would be able to undertake these investigations on your behalf to confirm this, saving you valuable time.
Under section 42(3) of the 1993 Act, there are specific procedural requirements for the Notice. We would recommend that you instruct a Solicitor to draft the Tenant’s notices, as it is very important that they are drafted correctly and in a legally compliant manner. If the Tenant’s notice is incorrect, the Landlord can reject it, and this could have the effect of preventing you from serving another notice for 12 months. Furthermore, the Leaseholder is liable for the Landlord’s reasonable costs from the date they receive the notice, so rejection of the notice due to invalidity could be quite an expensive mistake for a Leaseholder to make.
The process may include several negotiations with the landlord and even referred to tribunal if terms are not agreed on. The matter can be complicated and lengthy without seeking professional legal advice from the outset. We can assist you all the way through these procedures and register the lease extension at HM Land Registry once it has completed.
If you have any further queries in relation to the lease extension process, then please contact either Lorraine Lancaster on 01702 338338.
How can we help you today?
FAQ
What is a Residential Lease Extension?
A Residential Lease Extension is a legal process by which a tenant can extend the length of their leasehold on a property.
How do I qualify for a Residential Lease Extension?
To qualify for a Residential Lease Extension, a tenant must have been in occupation of the property for at least two years and the lease must have less than 80 years remaining.
How much does a Residential Lease Extension cost?
The cost of a Residential Lease Extension can vary depending on factors such as the length of the extension, the property’s value, and legal fees. It’s important to consult with a solicitor or a professional valuer for a detailed estimate.
How long does the process of a Residential Lease Extension take?
The process of a Residential Lease Extension can take anywhere from several months to a year or more, depending on the complexity of the case and any disputes that may arise.
Can the landlord refuse a Residential Lease Extension?
A landlord has the right to refuse a Residential Lease Extension, but they must provide a valid reason for doing so. If a tenant disputes the refusal, the matter can be taken to the First-tier Tribunal (Property Chamber) in England and Wales.
What happens after a Residential Lease Extension is granted?
After a Residential Lease Extension is granted, the tenant will have a new lease with an extended lease term. They will also be responsible for paying an increased ground rent, which is usually set at a peppercorn rent (a nominal rent of £1 per year), or a small fixed amount.
OUR CLIENTS SAY…
“I have just completed the sale of a property. Amber Day and her team provided a very professional and timely service. They are always available and happy to pick up the phone. It really moves the process along.”
David H
“We recently completed on a house in Benfleet. Sophie Davies was professional, reliable, efficient and friendly. She was outstanding and a credit to your firm.”
Ian Smith
“I can’t express how grateful I am for all that you have done. The relief from the months of worry is huge and this is the best result we could have wished for.”
Mr K
OUR OFFICES
Located in the heart of London and Essex
Paul Robinson Solicitors is a thriving independent law firm committed to providing exceptional service to clients nationwide, with offices situated throughout London and Essex.
Established in 1983, the firm has steadily expanded over the past 35 years, offering an extensive range of legal services to both personal and commercial clients. The team of highly experienced and skilled solicitors specialises in various fields and is dedicated to providing an outstanding level of service to achieve positive outcomes for their clients. The firm’s cutting-edge technology and efficient systems, together with its support and managerial staff, ensure maximum efficiency, accuracy, and cost-effectiveness.
