Lease Extensions

A Lease Extension is a contractual agreement primarily involving the freeholder and leaseholder, wherein an extension period is added to an existing long-term lease.

This process entails the replacement of the current lease with a new one, specifying the commencement and conclusion dates of the extended lease, as well as outlining any updated terms.

Here are key bullet points for a lease extension to help you:

• Extends the length of your current lease, usually for 90 years on a flat.
• Increases property value and makes it easier to sell.
• Reduces ground rent to a nominal (peppercorn) amount.
• Legal right to extend after owning the property for at least 2 years.
• Lease extension cost includes a premium, legal fees, and valuation fees.
• The longer you wait, the more expensive the extension may become.
• Lease extensions are governed by the Leasehold Reform, Housing, and Urban Development Act 1993.
• A lease below 80 years may incur additional costs (marriage value).
• Can negotiate informally with the freeholder or follow a formal statutory process.
• Professional advice from solicitors and surveyors is recommended.

Find out how our panel of Specialist Property Solicitors can assist you.