© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
For professionals advising regularly in this technical area of law, the lease extension process may seem straightforward. However, the legislation is littered with onerous deadlines, some of which can have very serious consequences if missed.
Here is a list of the top ten dates not to stumble on…
2 YEAR OWNERSHIP
Before a claim can be initiated, a tenant must have accrued the requisite 2 year ownership period. This is taken from the date of registration at the Land Registry.
DON’T FORGET THE 80 YEAR RULE!
The need for urgent action will arise if the unexpired term of the lease is approaching 80 years. Once a lease dips below this, marriage value is incorporated into the valuation which, in simple terms will increase the premium.
DEADLINE FOR COUNTER NOTICE
Following service of the Notice of Claim, the landlord must be given at least 2 months in which to respond. It is always prudent to add a further 2 weeks to allow a little breathing space.
DEPOSIT
The landlord is at liberty to demand a 10% deposit. Although there is no immediate sanction, this should be paid within 14 days of any demand.
DEDUCTION OF TITLE
This must be requested by the landlord within 21 days of service of the Notice of Claim and thereafter, although no immediate sanction, it should be supplied by the tenant within 21 days of the request.
NO COUNTER NOTICE?
An application must be made to the Court within 6 months of the Counter Notice deadline or the opportunity will be lost.
IF TERMS CANNOT BE AGREED
An application can be made to the Leasehold Valuation Tribunal for a determination. This application cannot be made any earlier than 2 months from the date of the Counter Notice but the opportunity will be lost if it is not made within 6 months of this date.
THE “APPROPRIATE PERIOD”
Following agreement/determination of terms, the following timetable applies - known as the ‘appropriate period’:
The landlord must prepare the lease within 14 days of terms being agreed/determined
The tenant has 14 days to respond
The landlord has a further 14 days to re-amend or is deemed to accept the tenant’s amendments
COMPLETION
If the lease is not completed by the end of the appropriate period, either party can apply to the Court. This application must be made within 2 months of the end of the appropriate period or again, the opportunity will be lost.
WITHDRAWAL
If a Notice of Claim is withdrawn/deemed withdrawn, no further notice can be given for a period of 12 months. This could have a significant impact on the premium!
With the above in mind, it is imperative that both landlords and tenants seek advice from a specialist to avoid falling foul of these nasty and often costly, trip wires.