If you own a leasehold flat, each year the expiry date becomes closer, making it harder to remortgage or sell the flat once the unexpired term falls below 80 years. Harrisons can assist you to extend your lease.
You may have the right to extend your lease by an additional 90 years at a nil annual rent, under legislation as set out within the Leasehold Reform, Housing and Urban Development Act 1993 subject to the payment of a premium to your Landlord.
To qualify to extend the lease under this legislation, the original lease term must have been more than 21 years and you must have owned the flat for more than 2 years. If you are buying a flat that has a short lease, the vendor can make the application to extend the lease and assign the right to you on completion of the sale.
At Harrisons, our experience extends to successfully negotiating lease extensions throughout Kent and Central London and we have the knowledge and expertise to be able to advise you throughout the process including:
- Confirm that you qualify to extend the lease in accordance with the legislation
- Inspect the property
- Carry out a valuation to identify the likely cost of the lease extension.
- Arrange the serving of the Section 42 Notice to your Freeholder, in conjunction with your solicitor
- Following a response, enter into negotiations to agree a favourable premium to extend the lease
If negotiations are not successful, the matter can be referred to a Leasehold Valuation Tribunal, where we can act on your behalf, although such disputes are usually resolved prior to this as the cost and delays often encourages parties to compromise.
The Leasehold Reform Housing and Urban Development Act 1993 (as amended) gives Tenants the right, subject to qualification, to purchase the freehold interest of a building or part of the building.
Buying the freehold offers the Leaseholders a number of advantages including:
- Granting new leases to extend the length of a lease term
- Onerous leases can be redrafted, to allow a flat to be mortgageable
- Gives Leaseholders control of management of the building
Harrisons can advise you on how best to deal with this process ensuring that the appropriate legislative steps are taken in conjunction with your legal advisors.
If you require our advice, contact one of our surveyors to discuss your specific requirements and obtain a fee proposal.