How Can I Extend My Lease?

A change in the legislation has provided leaseholders protection against short leases, by giving them the right to extend their lease or the right to buy the property – but this can be very expensive. The law differs depending on whether the property is a house or flat:

Extending the lease on a flat:

Typically, with a flat you are able to extend the terms of the lease by an additional 90 years in conjunction with the unexpired term.

• If this is the case, you will be able to agree new terms of the lease with the landlord. Examples of this are changes to ground rent and responsibility for any works changing hands.

• This legal right is only available to those who have held the lease for two years and the original length of the lease exceeded 21 years.

• It is important to consider there is a premium for extending the lease – so please budget for this.

• When selling a property with a lease typically under 80 years, many people insist the leaseholder extend this before proceeding with the sale.

• Once the freeholder has been advised of the leaseholder’s right to extend their lease they may accept, negotiate or reject the proposal. If this is the case, this is appealable in court.

Extending the lease on a house:

You might have the right to extend the lease on your house by 50 years.

• If you have the right to extend your lease, you can also renegotiate the terms of your lease as above.

• The lease on the property must have been held for 2 years and it the original leased should usually be more than 21 years.

• Unlike flats, there is no fee payable for a lease extension for a house, however, your ground rent may increase.

• Once the freeholder has been advised of the leaseholder’s right to extend their lease they may accept, negotiate or reject the proposal. If this is the case, this is appealable in court.

Please contact us for assistance with extending your lease.

Buying the freehold on a leasehold property

Enfranchisement refers to the legal right to purchase a flat or house outright so the purchaser is the freeholder. It is important to discuss the pros and cons of extending you lease with a professional as it may prove invaluable purchasing the freehold.