Lease Extension

Property can be owned in two main ways. Owning the freehold of a property means you own the property outright, with no time limitations. If you own the leasehold of a property you own the right to stay in the property for a set number of years. This right is granted by way of a lease and leases are normally set for 999 years although other time lengths are possible, as is an extension.

Lease extension involves extending the length of the lease. This is often done to increase the value of the property - having a short lease, or a short amount of time left on a lease can dramatically reduce the value of a property. A lease extension can help to eliminate that problem.

The right to a lease extension is set out in the Leasehold Reform Housing and Urban Development Act 1993. This act sets out the right for a lease extension to extend the lease by 99 years plus the unexpired term for a 'peppercorn rent' i.e. rent free. Before a tenant submits their notice for a lease extension they must qualify as eligible tenants. To apply for a lease extension they must have been tenants for the past two years, with a long lease. A long lease is a lease that was originally granted for over 21 years. Certain shorter leases may quality for lease extension if they have a condition within the lease which gives the right to renewal.

Once a tenant has identified that they qualify for lease extension they serve a notice on their landlord. The landlord must serve a counter notice, a valuation date is set and after that the landlord will draft the new lease, which acts as the lease extension. The landlord and tenant must enter into this new lease by way of signature to finalise the lease extension.

A lease extension is not a simple process and you will need representation by either a Solicitor or Surveyor. Georgepope.com is a qualified Surveyor with over 30 years experience of acting for clients on lease extensions. He works in central London and offers a very personal service, never delegating work.



Georgepope.com specialise in Lease Extension. We have been acting for clients looking to purchase the freehold of their property in central London for thirty years. Visit us for Leasehold Enfranchisement.