Extending the term of a lease is known as a lease extension. A person might want to extend their lease for a variety of reasons. If a person wants to sell their house or flat but the property has a short lease, they will want to extend it. Properties with longer leases are more valuable. Furthermore, the lower the lease, the more expensive it becomes to extend, giving an incentive to people to extend their lease sooner rather than later.

A mortgage lender is unlikely to lend money on a property with a short lease, meaning the property will be challenging to sell. The owner, in this case, should extend the lease not only to add value, as abovementioned, but to ensure that the property is likely to sell on the housing market.

Timeframe for Lease Extension

The Leasehold Reform Housing & Urban Development Act 1993 outlines specific timeframes during which particular tasks must be completed.

The freeholder will be presented with an opening offer following a surveyor’s valuation. The figure is then served in a section 42, ‘Tenant’s Notice’ on the freeholder. Once the notice has been served, there is a 2-month timeframe in which the freeholder must respond and serve their own notice (section 45 notice).

If the parties involved cannot reach an agreement within a two to six month period, an application can be made to the First Tier Tribunal (FTT). This organisation can then decide on a fair price. However, the process can be expensive, so it is advised to try to reach agreement within the two to six months’ period, where possible.

Once agreement has been reached, your solicitor will complete the required paperwork for your new lease followed by the time it takes to register your new lease at the Land Registry.

Fees for lease extension

To find out how much your lease extension might cost, click here.

Property Solicitor Near Me

At Beverley Morris & Co. solicitors, we are experienced in assisting clients to extend their lease. We understand the various factors to consider and can advise accordingly.

Please get in touch with our property team in Blackheath on 020 8852 4433 or email enquiries@beverleymorris.co.uk. Alternatively, fill in this contact form.