Call now: 0208 866 6464
Existing clients tel: 0208 866 6464

The Sethi Partnership Solicitors

The Barn House, 38 Meadow Way,
Eastcote, Ruislip, Middlesex
England, HA4 8TB

info@sethi.co.uk

Call now: 0208 866 6464
Existing clients tel: 0208 866 6464

The Sethi Partnership Solicitors

The Barn House, 38 Meadow Way,
Eastcote, Ruislip, Middlesex
England, HA4 8TB

info@sethi.co.uk

Are you looking to extend your lease and you don’t know where to start?

Essentially, the shorter your lease the more it will cost you to extend. If you have a lease which is approaching the 80 year’ mark, you must start the ball rolling as soon as you can, as after the 80 year mark the cost of extending your lease increases considerably.

Shorter leases are less desirable to mortgage lenders and can put off potential buyers. The investment is worth making and it is essential you do not become complacent and postpone extending your lease however much it may seem daunting. In both cases you will need to agree a premium which is payable to your landlord for extending your lease.

There are two routes to extend your lease, formal and informal.

Formal Route

Also known as Statutory, Section 42, Under the Act lease extension.

If you have been the registered owner of your leasehold property for two years, you should be a qualifying leaseholder entitled to extend your lease under the Leasehold Reform, Housing and Urban Development Act 1993.

The formal route will grant you a term of 90 years in addition to your current term and will reduce any ground rent you pay to a peppercorn (zero).

In order to exercise your right under this act you will need serve a notice , known as; a Section 42 Notice, on the landlord stating the premium you wish to pay and thereafter the process is governed by strict timescales and protocols which must be followed by both parties. If you are unable to agree a premium with the landlord, then the matter can be escalated for the court to decide.

Informal Route

Also known as voluntary, private, open market, or by agreement lease extension.

There are no set terms or eligibility requirements.

The route involves negotiating the terms directly with the landlord. Often the landlord will agree a shorter extension with a continuing or increased ground rent at a lower premium. If the terms are acceptable then the matter can be completed swiftly.

Landlords can impose unfavourable terms, withdraw or delay completion and in such cases, you would need to revert to the formal route.

Whilst we have tried to simplify the process and give you an insight, extending your lease under both routes can be a complicated and costly process. Naveen Palram at The Sethi Partnership Solicitors has an in-depth knowledge and experience in dealing with all forms of lease extensions and can make the process much easier.

If you require more information relating to Lease extensions, please contact Naveen Palram in the Commercial Property Team at The Sethi Partnership Solicitors.



Naveen PalramResidential and Commercial Conveyancing Executive
T: (0)20 8866 6464
E: This email address is being protected from spambots. You need JavaScript enabled to view it.

The Sethi Partnership Solicitors I The Barn House I 38 Meadow Way I Eastcote I Ruislip I Middlesex I HA4 8TB

Please note that whilst we take every reasonable endeavour to ensure that the information and commentary is up-to-date and factual, any information or commentary is for information purposes only and is provided free of charge. Any opinions expressed are reserved and entirely those of the author. There is no assumed liability by The Sethi Partnership Solicitors, its employees or principals as to the contents and its correctness or accuracy, or for any consequences that may follow if the content or information is relied on.

The content, information or opinions expressed do not, and are not intended to, constitute legal advice by any means. If you require advice, we strongly advise that you speak with a specialist lawyer or legal advisor who is authorised to provide you with legal advice on your particular matter and not to rely on any commentary of information on this site.

“This document is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.”

 

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