Lease Extensions

Your Right
Under the Leasehold Reform, Housing and Urban Development Act 1993 all long leaseholders (generally speaking, leaseholders who have leases granted for more than 21 years) are given the right to extend their lease.  You may apply at any time while you have a long lease providing you fulfil the criteria as set out by the legislation.  The basic procedure is shown by the flowchart.  

Why Should I Extend My Lease
Firstly, as the term of your lease decreases, it becomes harder to sell.  Secondly, the longer the remaining term of the lease, the easier it is to obtain a mortgage as Lenders tend to shy away from lending against leases where the unexpired term is less than 80 years. Thirdly, extending your lease widens the market of buyers and makes your property more marketable. 

What Do I Get?
The right provides that in return for a premium or “one off payment” to the Landlord, you are granted a new lease for a term of 90 years on top of your present 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. 

Your new lease will be on largely similar terms to that of your old one apart from the length of term.  You will also no longer have to pay ground rent which is commonly known as a ‘peppercorn rent’. 

Do I qualify?
Acquiring an extended lease is an individual right.  The criteria is set out in the legislation but in brief, you must be a long leaseholder and have held your lease for two years or more.  Whether or not you have lived there for two years is no longer relevant.  Personal Representative may also be entitled to extend leases under certain circumstances. There may also be other factors that need to be considered.

For an overview of how we can help you to assess whether or not you are entitled to extend your lease, see our Lease Extensions flowchart. 

If you are a Leaseholder or a member of a Residents’ Association and wish to discuss your case with us, please contact:

Yashmin Mistry Solicitor Tel: (01295) 661 453 Email: yashminministry@brethertons.co.uk