How Can I Extend My Lease?

Extending the lease on your property can significantly increase its value, particularly if you are planning to sell or remortgage. There are two main routes available when extending a lease: Formal Lease Extensions and Informal Lease Extensions. 

Below, our experienced team explains the key differences between the two and what you need to know before proceeding.

Formal Lease Extensions 

A Formal Lease Extension is carried out under statutory legislation and guarantees an additional 90 years added to your existing lease, with ground rent reduced to a peppercorn (effectively nil). 

The leaseholder and freeholder must follow a strict legal process, and this route requires the involvement of both a qualified surveyor and a solicitor. A surveyor will calculate the premium payable to extend the lease, while a solicitor will handle the legal aspects of the application. 

Using the valuation provided by your surveyor, you can formally propose a premium to the freeholder. If an agreement cannot be reached, the matter can be referred to a First-tier Tribunal (Property Chamber) for determination. 

This option gives the leaseholder greater protection and control and often results in a more favourable outcome. Morgan Sloane can also undertake negotiations on your behalf throughout the formal lease extension process. 

Informal Lease Extensions 

An Informal Lease Extension involves direct negotiation between the leaseholder and freeholder without following the statutory procedure. This option is often quicker and may appear less costly at first. 

However, it carries significantly higher risk. All terms are open to negotiation, unlike a formal lease extension. A freeholder may seek unfavourable terms such as: 

• Retaining ground rent 
• Adding unfair clauses or fees 
• Withdrawing from negotiations at any stage 

For this reason, it is strongly recommended that you instruct a qualified surveyor to provide a full valuation of the lease extension premium before entering discussions. This ensures you have a clear understanding of what represents a fair and reasonable figure. Seeking advice from a solicitor is also advisable to protect your interests. 

How Morgan Sloane Can Help 

Morgan Sloane is an independent firm of Chartered Surveyors based in Essex, providing specialist property valuations and related advisory services, including building surveying. Our highly qualified team has extensive experience in lease extension valuations and negotiations, ensuring accurate and reliable advice throughout the process. 

Get Expert Advice on Your Lease Extension 

For further advice, or to instruct one of our qualified surveyors for a valuation ahead of your lease extension application, contact us today.