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Can I extend my lease?
Unfortunately we are unable to give you a price for the premium for a lease extension, but detailed below explains about the process of obtaining one.
There are 2 ways of proceeding with the lease extension; formally under the Commonhold and Leasehold reform Act 2002 or informally where the leaseholder/s agrees to the Groups’ purchase price and cost relating to the purchase.
Formally
You are required under statute law to serve a formal Notice as set down by the Act, and normally this is drawn up through your legal representative, having already ascertained a proposed cost from a surveyor. You have to have met the residency test which is to have owned the property for at least two years.
By dealing with this matter through the Act there are set timescales which all parties have to adhere to and if no agreement can be made over the premium (cost) then both parties can approach the LVT for a determination. The lease is extended for a further 90 years and any ground rent reverts to a peppercorn for the remainder of the term.
For more detailed information please click here to download our information sheet.
Informally
You would request the Group to value the property for a lease extension. The Group would instruct an independent valuer to carry this out and the Group would then make an offer based on this valuation.
Obviously with this route there is little room for negotiation. Timescales are not so rigid but the valuation would still have to be current (normally 3 months from the date of the valuation). The residency test would not apply in an informal agreement. The lease is extended for a further 90 years and any ground rent payments continue under the terms of the new lease.
Leaseholders in both cases would be responsible for the Groups' costs of £100.00 plus VAT (50% payable if you decide not to extend your lease), surveyor's fees (approximately £250 plus VAT) and solicitor's fees (£500.00 plus VAT). All costs, fees and any outstanding service charge or ground rent must be paid up to date on completion.
Unfortunately we are unable to provide details of the cost of the lease extensions as this is determined by the surveyor.
Previous valuations have ranged from £500 to £19,000 depending on the value of the property, the length of the lease left and the amount of ground rent payable.
For independent information regarding leasehold properties including lease extensions please use the following link:
