How to extend your lease

There is a lot of information available over the internet but the best thing to do is speak to a specialist solicitor and have a look at their website, as there will often be useful guides that can assist your understanding.

First of all, in order to qualify, you must have owned your flat for at least two years.  Secondly, your lease must have been granted for more than 21 years.

Most residential leases are granted for 99 years or more so most leases qualify.

It is a good idea to speak to your neighbours. Find out if others are interested in joining you, or whether they have already been through the same the process. If more than two or three people extend their leases together there can be economies of scale as your collective purchasing power may help to keep costs to a minimum.

Once you know that there is a group of you that qualify, the next step is to gather as much information as possible so that your solicitor can get straight to work. You will need a copy of your lease and an up to date ground rent and service charge demand from your landlord or management company.

Speak with a specialist surveyor who will guide you through the highest and the lowest price for your lease extension. Your solicitor will be able to recommend expert surveyors who have local knowledge of your area.

So what do you get for my money? You will be granted a new lease, which will be on the same terms as your old lease but the term will be extended by 90 years in addition to your existing term and the ground rent will reduce to a peppercorn (zero).

Next, your solicitor will serve a section 42 notice on your landlord. Your landlord will have two months to respond and once you have received the counter notice (which will usually counter propose a higher price) your surveyor will enter into negotiations on price and your solicitor will negotiate the terms of your new lease.

As soon as the price and the terms of the new lease have been agreed, you can proceed towards completion of your new lease.

Your solicitor will then register your new lease at the Land Registry and you will be safe in the knowledge that you have protected your lease and enhanced the value of your home or investment.