Lease Extensions

The Leasehold Reform Act 1967 and The Leasehold Reform and Housing and Urban Development Act 1993 are the two primary pieces of legislation governing a leaseholder's right to buy a lease extension or freehold.

Too many specialists in this area confuse leaseholders by not explaining the process in a simple manner, using terms such as "marriage value", "relativity" and deferment rates" without attempting to explain their meaning. We are here to try and make the process less daunting and more comprehensible.

lease extensions

The purchasing of lease extensions/freeholds is a complex and legal process requiring two key elements.

  1. The valuing and negotiating of the freehold or lease extension. The formula for calculating the cost of the extension based on the determined valuation is complicated. Leaseholders are best represented by experienced specialists, used to valuing and negotiating with the large estates and smaller individual freeholders.
  2. Serving notices, completing the new lease/freehold documents and registering the new title (and if necessary, handling mortgage lender requirements if the transaction is being financed).

With our experience of working in an era when the legislation came in to effect in 1993 and being involved in the acquisition of a leasehold house which became a text case between a leaseholder and the Cadogan Estate, we are well placed to guide you in “laymens” terms including getting you quotes from appropriate professionals and providing general pertinent information, e.g. the significance of applying for lease extensions before your lease drops below 80 years.

Once Notices have been served we will liaise directly with you and advise how the deal is progressing, keeping in touch with the lawyer and surveyor acting on your behalf.

Please contact David McKee if you would like any further information or advice.

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