Under the 1993 Leasehold Reform Act, most flat-owners are legally entitled to get 90 years added to their lease at a fair market price. To be eligible for a lease extension you must:
- Own a long lease (over 21years).
- You must have owned it for the past two years.
- You must be a residential tenant and not be a business or commercial tenant.
- You do not need to have lived in the property for this period but merely owned the lease for two years or more.
Some exceptions to lease extension are when:
- The flat is leased to you by a charitable housing trust on a charitable basis
- You are a business or a commercial tenant (i.e. you have to be an individual)
- The flat is part of a National Trust property
- The flat is part of a property owned by the Crown
- The flat is within a cathedral precinct
- The lease is fewer than five years remaining on the term and there is proof that the property is to be redeveloped.
Furthermore, a freeholder can be approached within the first two years of your ownership to extend a lease but they will usually seek extra remuneration for doing so because it is down to their discretion and not an automatic right. There are various exceptions where a freeholder cannot accommodate a new owner in this way including:
- Where the majority of the leaseholders (in a block of flats for example) have applied to buy the freehold.
- The lease has already ended
- You have sub-let the home on a lease of at least 21 years
- The lease was already granted for less than 21 years
- If your freeholder wants to demolish or redevelop the property
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.