Residential Lease Extensions – What you need to know…

Extending the Lease of your flat can be a complex and lengthy process, it is therefore important to ensure that you seek professional advice as soon as possible.

The cost of adding further years to the Lease of your flat is known as “the premium”. It is difficult to estimate the premium that your Landlord will request as this is based on a number of factors. These factors include; the unexpired term remaining on the Lease, the value of the flat and any improvements or alterations to the flat. Surveyors will use a complex formula when considering the premium and any such valuation can be subject to negotiation.

It is important to know from the outset that, in addition to paying the premium for the extra years on your lease, you will also be responsible for; your own legal costs and those of your Landlord, the cost of a valuation and Land Registration Fees.

Due to the complex nature of the transaction, Lease extensions can take anywhere between 6-12 months to complete. Should you wish to subsequently sell your property, following extending the Lease term, this time frame should be considered in advance to avoid unexpected delays.

Ensuring that you instruct a professional who specialises in Lease extensions will result in you being fully informed of the nature of the transaction applicable to your property and can save you losing both money and your right to extend your lease.

Your Lease can be extended by mutual agreement with your Landlord or by following a statutory process. Care should be taken when undertaking either route, your appointed legal professional can advise you of the merits and pitfalls that can be associated with these options.

If you are considering extending your lease please feel free to make contact with our firm, who can provide you with advice based on your specific requirements.

Posted on October 25, 2017 by stuart