Collis and Co Solicitors

Lease Extensions

If you are the owner of a flat, then the 1993 Leasehold Reform Housing and Urban Development Act allows you to compel your freeholder to sell you an extension to your lease (subject to qualifying provisions) - even if your freeholder is absent or missing (please see our section on missing freeholders if this applies to you)

The Act is quite specific in procedure and timetables, but if your freeholder does oppose the price you are offering and the matter is referred to the Leasehold Valuation Tribunal then ultimately the whole process could take up to a year, so if you are thinking of moving soon, you should consider starting this process now.

Another good reason to proceed now, is that the value of the property has a significant bearing on the price you will have to pay for your lease extension, and with property prices lower than they have been for many years it is something worth considering.

In essence the process comprises of an offer being made to the freeholder of a price for the lease extension, which is 90 years added to the initial term with the ground rent disappearing altogether, the freeholder then has a chance to accept or reject the offer, and if you cannot reach agreement then the matter is referred to the Leasehold Valuation Tribunal who will determine the price and this binds both parties.

We can recommend you to a specialist surveyor who will help you determine the price to offer the freeholder and who can also deal with your negotiations, and ultimately appear at the Tribunal if you wish, although the majority of cases are settled before they reach the Tribunal stage.

Also, although the Tribunal process itself is free we will also discuss the issue of costs with you, as you will bear all of the costs in this matter, but there is regulation within the legislation which controls the amount that the freeholder can charge you.