As one of the UK’s leading experts in residential leasehold enfranchisement, we advise landlords and tenants on all aspects of extending the lease on a leasehold property or purchasing a share of the freehold.
Nearly 30 years after first publishing our Graph of Relativities (1996), it remains the industry standard tool for practitioners, with a comprehensive update completed in 2016.
Our range of services includes performing bespoke valuations, negotiating premiums and providing evidence as expert witnesses.
How to Extend a Lease
A leasehold property refers to a property owned for a certain amount of time, as outlined in the lease agreement. A leasehold enfranchisement is the process to extend a lease or purchase a share of the freehold.
When a leasehold property is purchased, an agreement is entered with the landlord and this agreement is known as a leader. Long-term leases can run from 100 years up to 999 years, depending on the agreement.
Leasehold properties typically still have years remaining on the lease when bought or sold. If there’s less than 100 years left on a leasehold, an extension should be sought, since once a lease falls to below 80 years the value quickly drops and it will cost more to extend.
While tenants can request a lease extension at any time, it can be a complicated process. Our team can help navigate each step.
The Request Process
- Informally approach the landlord about the terms they will grant for an extension.
- Then, before agreeing to anything, talk to us. We can help to secure the best possible terms.
- Our team can provide bespoke valuations, negotiate premiums and offer evidence as expert witnesses in the process.
- If an informal agreement cannot be reached, we can help prepare a formal offer.
- The landlord must serve a counter notice before the date set out in the formal offer, stating whether they admit the claim and which proposals they accept or reject.
- After the counter notice has been served, the parties enter negotiations.
Valuation
As a premium must be paid to extend the leasehold, a surveyor will do a valuation of the property to help set a realistic price for lease extension.
How much is paid depends on a variety of factors such as annual ground rent, the number of years left on the lease, and the market value of the property.
Specific Services
Our team of leasehold enfranchisement specialists can assist with a variety of procedures including:
- A leasehold enfranchisement valuation report
- Negotiations with landlords
- Negotiate premiums
- Liaise with solicitors appointed
- Provide expert advice
- Provide evidence as expert witnesses
- Understand the two potentially conflicting standpoints of both leaseholders and landlords
- Advice on obligations and costs
