Lease Extension

Lease Extension Solicitors

When did you last check how much time is remaining on the lease of your flat? Do you need a lease extension?

Many mortgage lenders refuse to lend if they consider the lease term (ie the number of years remaining) too short. Some lenders consider the lease term too short when reaches 85 years, affecting the flat’s value and marketability. And once the remaining term drops below 80 years, the price you pay to extend the lease rises dramatically as so-called “marriage value” becomes payable.

Marriage value

Marriage value is the increase in the property’s value following completion of the lease extension.

You can acquire a lease extension no matter how short your lease is, but extending before the term drops below 80 years is much cheaper.

Should I extend my lease?

Extending your lease not only preserves the value of your flat but ensures a quick and smooth sale. Legislation gives qualifying leaseholders the right to extend their lease:

• by 90 years at zero rent for a flat;
• by 50 years at zero rent for a house.

“Thank you again, your guidance and advice has been superb and I think we did a good fight! I will have no hesitation whatsoever in recommending you to anyone I know who would need your services.” DL

How to extend a lease

Exercising your right to a lease extension is a technical procedure with traps for the unwary. Consequently, you should only use experienced solicitors, and by choosing us, you will:

• use experienced, specialist solicitors who will ensure you avoid the pitfalls.
• maximise your chances of getting the very best deal.
• be kept informed throughout the process.

Lease extension calculator

We work with a network of specialist surveyors well-versed in the legislation. It is important to use the right surveyor who understands how best to calculate the price (known as the “premium”) you must pay for the lease extension.

However, to give you a good general indication of the likely premium, there is a very useful lease extension calculator available on the Leasehold Advisory Service’s website.

“Thank you, you made what seemed to us a daunting process really straightforward.” KL

Lease extension cost

No two lease extensions are the same because lease wording and flat values vary considerably. Also, at the outset, it is not possible to predict your landlord’s attitude. Their approach to the claim can affect the amount of work involved and, therefore, your costs.

However, it is important that you are aware of all of the likely costs involved so you are in a better position to make an informed decision about whether to proceed. For that reason, we always strive to make costs as transparent as possible.

Even if just considering the possibility of extending your lease, we encourage you to contact us for an informal, no-obligation discussion. Doing so enables us set out for you as best we can an indication of the likely costs involved, including:

• the premium;
• surveyor’s fees;
• legal fees;
• Land Registry Fees;
• Mortgage Lender’s Fees (if applicable);
• Stamp Duty (if applicable).

It is also important to remember that the legislation obliges you to contribute to the landlord’s expenses. We can advise on budgeting for these.