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Our valuers specialise in residential lease extension We act on behalf of landlord or tenants advising on options available to each party.
Acting for either the leaseholder or the freeholder, we specialise in the valuation and negotiation required for residential lease extensions. We operate throughout London, Buckinghamshire, Berkshire, Surrey, Hampshire, Oxfordshire and Hertfordshire.
The Leasehold Reform, Housing and Urban Development Act 1993 gives the leaseholder – also known as the tenant or lessee – the right to extend their lease by a further 90 years, without payment of any further ground rent. The freeholder (often referred to as the landlord) is legally obligated to comply with this request, depending on three criteria:
It is especially important for leaseholders to act upon extending their lease when the unexpired lease term is approaching 80 years as this is when the costs involved begin to escalate.
A Simple guide to lease extensionsview here
A leaseholders guide to residential lease extensionsview here
A freeholders guide to residential lease extensionsview here
Residential lease extensions - step by step processview here
Why and when do I need to consider extending my lease?view here
What's the difference between freehold and leasehold?view here
Less than 80 years remaining? Why you need to act nowview here
Let us know how we can help you and we'll put you in touch with a commercial property specialist.
Extending your lease can take anywhere between 2 and 12 months, and in some cases longer. If you can agree an informal extension with your freeholder the lease documentation can be finalised relatively quickly. If notices are required and even a potential tribunal hearing, the matter can take far longer. We usually recommend contacting your freeholder informally to gauge whether they will agree an informal approach, but do not wait too long. Serving notice sets a timeline in motion that ensures the matter is dealt with within certain a certain timeframe.
This varies widely depending on a number of inputs. How much is the ground rent? How long is left on the lease? What is the value of the flat? For instance, a £200,000 flat with 85 years remaining and an annual ground rent of £200 should be under £10,000. If the flat is worth £750,000, with a similar ground rent but a 40 year lease, the premium would be considerably more, perhaps £50,000-£100,000.
Land Registry aim to get new leases registered within 30 days. This can vary depending on demand.
A section 42 notice is a formal notice, notifying the freeholder of your right to extend your lease. It should be served by your solicitor and it will contain a figure that you are proposing to pay for your lease extension. Under the Leasehold Reform, Housing and Urban Development Act 1993, you are entitled to a 90 year extension and for the ground rent to be removed.
Stamp Duty is only payable on an extension if the premium agreed is in excess of £125,000, similar to any property purchase.
Kempton Carr Croft’s Chartered Surveyors regularly complete lease extension valuations throughout London and the whole of the South East of England. The team works from offices in Basingstoke, Camberley, Gerrards Cross, Maidenhead, London, Reading, Staines and Windsor.