How Can I Extend My Lease?

By extending the lease on your property, you increase its value, which is ideal if you are planning to sell. There are two routes you can take when it comes to extending your lease on your property. These are known as Formal Lease Extensions and Informal Lease Extensions. Below, our experienced team discusses everything you need to know about both formal extensions and informal lease extensions. 

A Formal Lease Extension guarantees 90 more years on your lease and no further ground rent. The leaseholder and freeholder do need to follow a set procedure in line with the law. Taking this route would require you to hire a surveyor to calculate the amount you will need to pay to extend your lease, as well as a solicitor to provide legal advice. With the valuation provided to you by your professional surveyor, you can propose the advised cost of your lease extension to your freeholder within your formal application. If you are unable to come to an agreement you can go to a Tribunal. This option gives the leaseholder more control, and you will usually end up with a better deal Morgan Sloane are able to undertake negotiations on your behalf.

An Informal Lease Extension would involve yourself and your freeholder negotiating a lease extension and the costs (assuming they are cooperative in wanting to do so), without the formal application. Although this route can be more time efficient and less costly than the former, it is not usually worth the higher risk that you will end up paying more than you should have to. All terms are also up for negotiation, unlike a formal lease extension, which can lead to your freeholder requesting unfair terms, such as increasing existing notice fees or a retention of the existing ground rent. They can also withdraw from the agreement at any time. Before going into this discussion, it is important that you hire a qualified surveyor to do a full valuation of the premium for the lease extension so you have an idea of what you should be paying. Seeking advice from a solicitor would also be wise.

Morgan Sloane is an independent firm of chartered surveyors in Essex, providing specialist property valuations and related advisory services, including building surveying. Our highly qualified team has gained extensive experience in providing accurate valuations.

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