A lease can be extended either by a mutual agreement between the Landlord and Lease holder or formally by the law provided the lease is more than 21years and the leaseholder has owned the property for more than two years
In extending a lease you need the services of a Valuer or surveyor, an experienced solicitor, licensed conveyance, Lease extension specialist companies and a Leasehold Advisory Service.
Procedure for lease extension
The process is reasonably straightforward
(1). Investigate the Cost/fair premium from a valuer or surveyor
(2). Appoint Experts with Prior Experience in dealing with this area of law.
(3). Cause your solicitor to serve a Notice (a S42 Notice) on the landlord with a proposed premium.
(4). The landlord will usually reply by serving a Counter-notice on you which will usually be at a higher number!
(5). Most of the time, the two parties, using their valuers to negotiate, agree on a premium. Where agreement cannot be reached by negotiation, the correct premium is determined by an independent tribunal.
The statutory timetable for extending your lease (source: Leasehold Advisory Service)
1. Leaseholder serves S42 Tenant’s Notice
2. The “valuation date” will be fixed as the date of service of the S42 Tenant’s Notice
3. Landlord may request additional information, but he must do so within 21 days of receipt of the Tenant’s Notice
4. Leaseholders must respond to his request within 21 days
5. Landlord must serve a Counter-Notice by the date specified in the notice. This date must be at least two months from the date of service of the Tenant’s Notice
6. Where the landlord fails to serve the Counter-Notice leaseholders must apply to court within six months for a vesting order
7. After service of the Counter-Notice either party may apply to the Leasehold Valuation Tribunal. This must be done no sooner than two months from, but within six months of, the date of service of the Counter-notice
8. Leasehold Valuation Tribunal determination becomes final after 28 days. Appeals must be made within this period to the Lands Tribunal but only with the leave of the LVT
9. After Leasehold Valuation Tribunal decision is final landlord must provide draft lease within 14 days
10. Period of two months after decision becomes final for parties to enter into the new lease
11. If the period above elapses without entry into new lease, then leaseholder must apply to court within a further two months requiring the Landlord to meet his obligations
The usual timetable is 2-3 months where the matter is agreed by negotiation. If the matter proceeds to a tribunal it could take around 12 months. Unless you have time on your hands, this is why it is important to employ a valuer with a strong track record of agreeing lease extensions by negotiation.
Please call us on 0207 183 0084 or email us on firstname.lastname@example.org if you want to extend your lease or want to explore buying the freehold and to ask us about any reservations or queries that you may have; we are always happy to assist.