Leasehold Extension: Pros and Cons
Overview Pros and Cons Qualification Valuation Procedure Alternatives Services & Costs
Pro-Leagle offers a full Leasehold Extension Service.
A leaseholder can agree the terms of a lease extension informally with the freeholder. Alternatively, they may compel the freeholder to grant a lease extension via the statutory route.
The lease extension procedure differs depending on which route is taken:
What if the Freeholder cannot be traced?
- Pro-Leagle offers a Freeholder tracing service.
- If a leaseholder cannot trace the freehold owner they will be able to apply to the County Court for a 'vesting order' granting the Lease Extension. The case will then be transferred to the First-tier Tribunal (Property Chamber) for a determination of the premium payable.
Note: An independent valuation of the cost of lease extension (the premium) should be obtained before proceeding with legal work in order to determine affordability of the process. Pro-Leagle provide a range of valuation services.
Statutory Lease Extension
- A leaseholder should first ensure that they and their property are eligible for statutory lease extension. Pro-Leagle provide Lease Extension Eligibility Assessments.
- The leaseholder then serves a Section 42 Tenant's Notice of Claim under the Leasehold Reform Housing & Urban Development Act 1993 (as amended) on the freeholder claiming the right to a statutory lease extension and stating the proposed premium. The freeholder must respond to this by way of Section 45 Counter Notice within a set time-frame. Pro-Leagle provide full management services for the statutory lease extension process.
- If the premium, proposed terms of the lease or freeholder's legal/valuation costs cannot be agreed, referral to the First-tier Tribunal (Property Chamber) may be necessary for a determination. Pro-Leagle provide negotiation and Tribunal representation services.
- Once the premium and terms are agreed, a New Lease will then be prepared. Following payment of the lease extension premium and freeholder's costs the new lease will then be granted. Pro-Leagle can manage this conveyancing process on your behalf.
Informal Lease Extension
- The freeholder will generally request that their legal and/or surveyor's fees are paid up-front, before negotiations begin. There is no requirement for these costs to be 'reasonable', or refundable if the transaction does not complete.
- Once both leaseholder and freeholder have obtained an independent valuation of the lease extension they should informally negotiate the premium and terms of the New Lease.
- During an informal lease extension, the number of additional years added to the lease may be varied depending on negotiations. If a deed of surrender and re-grant is signed prior to 30 June 2022, the Ground Rent may also be increased. Additional clauses, potentially onerous to the leaseholder, may be requested. Pro-Leagle provide an expert negotiation service to facilitate agreement.
- Either party can withdraw at any stage prior to granting of the New Lease. In the event that the process does not proceed, there is no requirement for costs paid by the leaseholder to be refunded. Once the terms, and premium, have been agreed the conveyancing process can then proceed.
Ready to begin your lease-extension process? We provide transparent, fixed-fee services for both statutory and informal lease extension.
I was extremely happy with the service. I felt very well taken care of during the whole process and I am very happy with the result. I have recommended Pro-Leagle to other long leaseholders. Thank you very much.