LEASE EXTENSION WHY DO I NEED ONE?
Many leasehold Flats and Houses are owned on quite short leases and less than 75 years can cause problems with sale and mortgaging. It is cheaper to act early rather than wait until you need an extension.
The right provided by the 1993 Leasehold Reform Act (as amended) is for the grant of a new lease for a term of 90 years, plus the present un-expired term, all at a peppercorn rent (that is, rent free).
The formal procedure is started by the service of the Tenant's Notice on the landlord and it then follows a prescribed route. Although this is the beginning of the formal process for acquiring the 90-year extension, it should follow a period of preparation to ensure that you are fully equipped and advised to complete the acquisition.
There is a substantial amount of work to be completed beforehand.
You should first check that you meet the qualification requirements, that your lease is a long lease and that you have owned it for the last two years.
For a successful application you are recommended to appoint a valuer and a solicitor. In addition to their general advisory capacity the roles of the two professionals include:
· providing the 'best and worst' case valuation, in order to best advise you the possible outcome of the negotiations;
· advising on the amount of the offer to be made in the Notice;
· responding to the landlord's Counter-Notice;
· negotiation and settlement of the price and other terms of the lease, including representation at the Leasehold Valuation Tribunal (LVT).
· preparation of information for the application;
· service of the Notice on the competent landlord and copies and response to landlord's requests for information to support the claim;
· conveyance of the new lease.