Lease Extension

 
Do I have the right to extend to my lease?
 
You have the right to extend your lease at a peppercorn ground rent for 90 years, provided you have owned the flat for two years and the original term of the lease was greater than 21 years. Also you do not have to be resident in the flat.
 

How much does it cost?

It is standard practice that you will have to pay the freeholder's legal costs as well as the premium for the lease extension.

The premium to be paid for the lease extension is based on the value of the ground rent, the value of the freeholder’s reversion at the end of the lease; and half of the so called marriage value. The marriage value is the increase in value when the freehold and leasehold interests are combined or married together. If your lease is approaching 80 years left to run, cost savings can be made if you act now.

 
Once you have obtained a value for the premium, your solicitor serves a notice on the freeholder making a monetary offer. The freeholder either accepts the notice or serves a counter-notice stating his asking price.
 

If there is no agreement, both parties should try to negotiate a price. If this fails, then either party can apply to the Leasehold Valuation Tribunal who will determine the price.

If you have already agreed the premium costs with the freeholder informally and/or would like further advice and assistance regarding the above, please contact Juliana Majiyagbe or telephone 0208 290 7958 today for more details.

 
 
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