Lease Extensions Solicitors

What is a lease extension?

A lease refers to an agreement between a landlord and tenant surrounding a piece of land, typically a flat. Properties that are bought on a ‘leasehold’ basis are done so on the understanding that the buyer does not own the freehold interest in the piece of the land that the property physically resides on, but they do have the right to live there. 

As time goes on, the number of years that are available on the lease for the land reduces, and at a certain point, it will need to be extended. Typically, a new lease will have 100 years or more, however, general advice is to begin the process of extending a lease when it has reduced to around 80 years. 

There are two different ways to extend a lease, formal and informal. We will refer to the formal route.

Overview of the formal lease extension process 

As current legislation stands, if you have owned your leasehold property for more than two years, and at least 21 years were remaining on the lease when you made the purchase, by statutory law you are able to extend the lease via the formal method. 

The tenant should appoint a trained Solicitor to gather the required information for the lease extension process, before officially starting the application. 

The tenant will need to serve a tenant’s notice (section 42 notice) to the ‘competent landlord’ and any other parties with interest in the lease. This is usually the freeholder of the land, and may also include management companies. This notice requests an additional 90 years on the lease, alongside the removal of any future ground rent. 

Negotiations will then begin between the tenant and landlord, whereby the tenant will supply a formal offer based on a valuation, and a price will be agreed between the parties. 

If an agreement cannot be reached, it is possible that an application to the Tribunal may become necessary. This is when the First-Tier Tribunal (Property Chamber) will determine the price of the lease. 

It is important to note that you have only 6 months from the date of any counter notice to agree terms or to apply to the Tribunal. If this deadline is missed you will be deemed to have withdrawn your section 42 notice and you would need to wait for 12 months before you can serve a new notice. 

Once the price for the new lease is agreed, either via negotiation or application to the Tribunal, payment or arrangements for a remortgage will then need to occur before completion can take place. 

Why appoint a Solicitor for lease extensions?

There are many intricacies when it comes to extending a lease, therefore we highly recommend that a qualified conveyancing Solicitor is appointed to guide you through the proceedings. They will ensure that all information is processed effectively and that paperwork is completed correctly and in line with all legalities. Should there be a need to attend a Tribunal, having a Solicitor means a less stressful undertaking, as they will be able to manage and execute the application on your behalf and provide details on what you can expect. 

How Eric Robinson Solicitors can help 

At Eric Robinson Solicitors, our fully trained conveyancers will manage the process for you, ensuring a smooth and timely process. We will liaise with you to complete the associated research aspects, serve the section 42 notice on your behalf, respond to any requisitions and negotiations from the landlord(s), and manage the legalities involved in purchasing the new lease. 

To speak to us and find out more, get in touch with one of our local branches at the following locations: Southampton, Hedge End, Chandlers Ford, Winchester, Lymington, or Richmond Upon Thames.