Extending your lease
If you are the owner of a long lease of a flat and have owned the flat for two years you are a qualifying tenant under the legislation.
What are the benefits of extending my lease?
- It will make your property more marketable.
- You will protect your property from loss of value due to a declining lease term.
- You will no longer have to pay ground rent.
What do I qualify for?
A 90-year extension to the unexpired term of your current lease at a peppercorn rent (i.e. no ground rent). Other payments under the lease such as service charge are unaffected.
What is the procedure?
- You should obtain a valuation from a specialist valuer as to the price to be paid.
- A claim notice is then prepared and served on the freeholder.
- The freeholder has to be a given a period of at least two months within which to respond and serve a counter notice.
- Negotiations then take place usually regarding the price. If agreement is reached, the lease extension is then prepared. If there is no agreement then an application can be made to the Leasehold Valuation Tribunal to determine the price payable.
The procedure is governed by the legislation and you should note the following: