Lease Extension Solicitors for leaseholders and freeholders
(Last Updated: 29/05/2024)
04/08/2020
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0 min read
Key Takeaways
- You will need a solicitor, whether taking the formal or informal route, however here are some parts of the process where you don't - strict deadlines
- The formal route extends the lease by 90 years, the informal route can vary
- The formal route reduces the ground rent to a 'peppercorn', the informal route can vary
- Lease extension solicitors are skilled at negotiating the premium paid for the extension
The Leasehold and Freehold Reform Act 2024 was passed on the 24th May 2024, but is not yet in effect and the date for this is not yet clear. We will update our content as and when the finalised legislation is published. Read more - Expected changes
Whether you are taking the formal or informal route to extend your lease, you are going to need to instruct a specialist lease extension solicitor. The role of lease extension solicitors depends on the route you decide to take when extending your lease; informal or formal.
The Leasehold Reform Act dictates the formal lease extension process and, most importantly, the various deadlines which your lease extension solicitor must adhere to. Should your solicitor make a mistake and miss a deadline, it can cause you to have to wait 12 months before you can restart the process.
Our specialist team of lease extension solicitors can help get the lowest lease extension premium from your Freeholder. Once this premium has been agreed, they then manage the serving of the Section 42 Notice, the review of the new lease, then finally the completion and the registration of your new lease.
Free initial leasehold advice
Arrange a free consultation with one of our experienced conveyancing executives on:
- Lease extension.
- Purchasing the leasehold, freehold or share of freehold.
- Selling a leasehold property with a short lease.
- Extending the lease at the same time as you sell.
We specialise in lease extensions and have RICS valuers for the premium/negotiation and solicitors for the section 42 notice and formal or informal extension. Request a tailored quote for:
- RICS Lease Extension Valuation or L2 Homebuyers Survey.
- Serving of the section 42 notice or section 13 notice on the freeholder.
- Negotiation with the freeholder (with the support of your RICS valuer).
- Completion of the legal work, including deed of variation.
- Application to Tribunal to determine the premium.
- Vesting order for absent landlords.
Lease Extension Solicitors Near Me or Remote Service?
The whole of the lease extension process can be handled by your solicitor from where they are based so there is no need to look for a solicitor near you. It is much better to choose a solicitor who is qualified and specialises in leasehold enfranchisement. We can act for any client throughout the whole of England.
Formal or Informal: 2 routes to choose between
The lease extension process starts with choosing between taking the formal or informal route.
Formal Lease Extension Route
The formal lease extension route, which is recommended, is enshrined in law (The Leasehold Reform Act 1993 as amended). It involves you hiring a RICS valuer to provide you with a lease extension valuation, then using this figure as a basis for instructing a solicitor to serve your landlord/freeholder with a Section 42 Tenant's Notice to inform them of your intentions.
Your freeholder, if available, must respond and they can either agree, with or without conditions, or disagree. Should they disagree, you (or they) have the option to take the matter to a Leasehold Valuation Tribunal which makes a final decision binding on both parties. Should you or they choose to take the tribunal option, this has to be done between 2 and 6 months of the date of service of the Section 45 Counter-Notice.
This process is explained in more detail in this article: Lease Extension Process
Pros
- You get a lease with an additional 90 years on top of the current lease term
- The ground rent goes to a Peppercorn Ground Rent (ie zero)
- The process must follow a prescribed route with deadlines set for completion
- The premium is calculated the formula contained within the Act
Cons
- You have to extend for 90 years and be able to pay the premium for this amount of money (which can be in the £10,000s)
- There is an additional clause in the statutory terms that states:
"the landlord’s redevelopment right giving the landlord the right to repossession of the flat for the purposes of redevelopment. This right does not arise until the end of the term of the existing lease and is subject to a court application and the payment of full compensation to the leaseholder for the full value of the remaining 90 years."
If you take this route, when you achieve success, you are granted 90 extra years on your lease and have no further ground rent to pay for your remaining term.
Serving the section 42 notice
Lease extension solicitors will obtain copies of your lease and office copies from the Land Registry to ascertain who the freeholder is, if this information is available. During this period, on the basis of your Lease Extension Valuation, they can 'sound out' your freeholder, even to the extent of making an informal offer.
The solicitor serves the section 42 notice on the Freeholder.
You'll have to negotiate your premium with your freeholder. Your solicitor can help with this.
Leasehold Extension Solicitors - Conveyancing
Once you and your freeholder have agreed the premium you'll pay for your lease extension, your lease extension solicitor contacts your freeholder's solicitors. They have to deal with your freeholder's undertaking for reasonable costs incurred and approve the new lease, drafted by the freeholder's solicitors.
Once your solicitor has approved the new lease, then they take the process to completion and finally register the new lease with the Land Registry.
Need an experienced solicitor to carry out your lease extension conveyancing?
Arrange a consultation to request a tailored quote to match your needs.
Fixed Fee | Rated Excellent on Trustpilot | Leasehold Extension Specialists | National coverage
Informal Lease Extension Route
The informal route gives you the option to decide how many years you ideally want the extend the lease by but, critically, it contains no legal force compelling the Freeholder to allow you to extend it at all - it requires their consent. Essentially, the process is the same otherwise as for the formal route but there are no statutorily enforced time constraints which leaves open the possibility of long - and possibly expensive - delays.
In sum, the informal route does not include the serving of a Section 42 Notice or equivalent so you cannot ultimately force the Freeholder to come to terms and negotiate over a disputed valuation.
You will also require additional legal support if you choose the informal route because other matters may arise such as new terms in the lease and ground rent increasing. It is also worth noting that there is no automatic right to have no further ground rent to pay if you take the informal route.
If you are unsuccessful in gaining your lease extension informally, you have the option to take the formal route described.
Pros
- You can get a lease for any length of term
- Saves you paying for a section 42 notice
- Makes it more affordable if you can’t afford 90 years, but can afford a lower number of years
Cons
- No guarantee the process will complete
- The process doesn’t follow the strict time line set in the Leasehold reform act
- The valuation isn’t calculated using the formula in the Act – the Freeholder can charge anything they like
- You’ll still have to pay annual ground rent until the pre-existing term expires, then it falls to peppercorn rent for the extension
Do you require Lease Extension Solicitors?
Should you want to extend your lease, call us on 02071 125388 or use the form below for free initial advice and a tailored quote.
Fixed Fee | Rated Excellent on Trustpilot | Leasehold Extension Specialists | National coverage
Written by:
Andrew Boast
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Reviewed by:
Caragh Bailey
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
