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Lease Extension of Flats

lease extension of flats

JPC Law have a great deal of experience helping clients understand the lease extension legal process in London and across the UK. We are specialists in complex lease extension cases and are known for our expertise in this field.

Find out more on leasehold enfranchisement.

The right

Under the Leasehold Reform Housing and Urban Development Act 1993 tenants of long leases are given the right to extend. The right provided for the Act is for the grant of a lease extension for:

  • An additional 90 year term to the unexpired term. So for example, if you have 50 years left to run on your lease, after the lease extension you will end up with a lease with an unexpired term of 140 years
  • A lease on exactly the same terms as that which you have at the moment (subject to minor up- dating) and
  • All for a “peppercorn rent” (i.e. nil rent for the remainder of the term). Generally speaking, to exercise the right under the 1993 Act you must have a lease originally granted for a term of more than 21 years and you must have held your lease for at least two years.

Lease Extension Process

To start the claim it is necessary to serve the landlord for a formal notice setting out the terms you propose for the lease extension including the premium you are willing to pay. Serving the notice of claim triggers a strict timetable which is set out in the legislation.

For more information on the lease extension process see our flowchart.

Why should I extend my lease?

As the number of years left on a lease extension decreases, it becomes harder to sell and it may be difficult to raise a mortgage on the property. Most potential buyers do not want the hassle of extending the lease after they purchase the property and most lenders are most reluctant to lend against leases where the unexpired term is less than 75 to 80 years. Extending your lease makes the property more marketable and widens the market of buyers (and lenders).

The premium: how much will it cost me?

The “premium” is a one-off payment payable to the landlord (and any intermediate landlords) in return for the new lease. It is essential to obtain specialist valuation advice on the premium payable and since we work regularly with specialist valuers we would be happy to assist you in recommending and instructing a valuer on your behalf.

In the meantime, for a quick and instant estimate of the premium payable to your landlord in return for an extension on your lease try, our online calculator.

Our online lease extension calculator will give you a general guide for the premium for your new lease. It does not give actual costs. You should not use this information in tribunal or court proceedings and neither should you take any other action based on this information without first getting specialist professional advice.

As you will see the legislation contains statutory timetables which you need to be aware of. Failure to comply with the timetable may lead to your claim becoming void. For jargon-free straight talking advice on your lease extension claim please contact our London-based experts.

Lease Extension of Flats department