At Cleversons our team of property lawyers deal with the entire lease extension process, ensuring a smooth and efficient process. Whether you need to extend the lease, are buying the freehold or taking over the management of your building, our team can make the complex legal procedure stress free.
If you’re unsure on the best action to take we recommend getting in touch as soon as possible, all the time you are unsure, the lease is running down and costs could be escalating.
There’s three different ways of extending a lease on your property. Find out more about each option and what’s involved.
There is a statutory procedure for extending the lease period by 90 years. This involves serving a notice, obtaining valuations, and agreeing a premium (price). The tenants will have to pay your legal costs and valuation fees. The lease provisions remain the same, except the ground rent is reduced to a peppercorn, which in practice means that there is no ground rent to pay for the rest of the lease period.
You can agree to extend the lease without being served with a statutory notice, you can instruct valuers and agree to extend the lease period for more than 90 years. You could try and use this to your advantage by suggesting high rents and unrealistic rent rises. However, this can result in lenders rejecting any future mortgage applications. Particularly if the rent doubles periodically, increases too frequently, or rises above £250 per year if the property is outside of London.
Should you decide to extend the lease on your property without any pressure from your tenants you have greater control over the terms you decide to include within the extended lease. We’d always advise extending the lease for over 90 years to ensure another extension is not needed in your lifetime. It is possible to negotiate with existing tenants for them to cover your legal costs, in return for a clause to offset costs.
If you need to extend the lease on your property but you are unsure on the best option to take, give our team a call on 0203 9252 301 to discuss your requirements with a solicitor or complete the online enquiry form below.