Ormerods Solicitors Croydon Wimbledon Reigate

LEASE EXTENSION

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Residential tenants (flat owners) have certain rights to make a claim for to extend their lease and Ormerods solicitors in Croydon Reigate & Wimbledon can help flat owners claim.

Who has the right to extend their lease?

You automatically have the right to apply for a lease extension if you are a Qualifying Tenant under the Leasehold Reform Act 1993.

A Qualifying Tenant is:

- the tenant of a residential flat;
- not a business tenant;
- the original term of the lease was longer than 21 years; and
- someone who has owned the lease for at least two years.

A claim for a lease extension given by the landlord can be made if:

- the immediate landlord is the freeholder of the property
- if the immediate landlord is a leaseholder, the right to an extension will depend on the length of the term the landlord has left on its lease; and
- the landlord is not a charitable housing trust

How much does a lease extension cost?

You will have to pay a price (the premium) for the lease extension. The price is made up of several elements and is calculated using a statutory formula. Amongst other things, the value of the property and the term remaining on the lease are factors determining the cost. Generally speaking the shorter the term of the lease remaining the more the lease extension will cost. The date on which the application is made by the tenant for a lease extension will be the valuation date. You will also have to pay the landlord's legal fees and its costs of the valuation, as well as your own legal fees and valuation costs.

What are the details of the extended lease?

You have the right to be granted a lease of 90 years plus the present unexpired term from the date of expiry of the old lease. The rent will be a peppercorn. This means rent free. The lease will be very much on the same terms as your existing lease but may be subject to amendment and may be updated to bring it into line with modern law. It is worth mentioning that the landlord will keep a right to redevelop the property at the end of the existing term of the lease.

CALL US TODAY ON 020 8686 5000

Ormerods solicitors in Croydon Reigate & Wimbledon can help you make your claim for a lease extension.

How does the process work?

Your solicitor will serve an initial notice requesting certain information from your landlord. Following receipt of the information requested, your solicitor will then serve the notice of claim which will set out your proposed terms for the lease extension.
The landlord usually responds and frequently requires payment of a deposit of 10% of the price offered in your notice, such deposit to be held by the landlord's solicitor.
The landlord will value the premises, usually using its own surveyor, and then will serve a counter-notice which will state whether or not they object to the claim and also sets out the landlord's proposed terms.

If the parties cannot come to an agreement within a certain timeframe, either party can apply to the Leasehold Valuation Tribunal for a determination of your claim.

FREEHOLD PURCHASE (ENFRANCHISEMENT)

In some circumstances, if enough qualifying leaseholders group together, the freehold can be purchased from the Landlord, whether or not the Landlord wishes to sell it. This allows leaseholders to gain control over the building from Landlords who will primarily own the freehold as part of an investment portfolio rather than having any material day to day interest in the property itself.

We have 3 offices we have solicitors in Croydon Wimbledon & Reigate. So if you are located in the South and West of London we are probably conveniently located for you. If you are looking to instruct solicitors in Croydon the main office of Ormerods is conveniently located near the rail and tramlinks.