It could be a good time for you to extend your lease.
Do I have the right to extend my lease?
In short yes, subject to the fulfilment of the statutory criteria – Statutory Lease Extension
The qualifying criteria for exercising the right are:
- You must hold the property under a long lease.
- The property must be a flat
- You must have held the lease for a continuous period of two years prior to serving the notice which initiates the claim – A section 42 notice.
The right is exercisable by corporate bodies as well as by individuals.
What happens next?
- On service of a valid s42 notice your landlord is bound to grant you a new lease and you are bound to accept it subject to compliance with the Leasehold Reform Housing and Urban Development Act 1993 and to your right to withdraw.
- The term of the new lease is 90 years plus the remainder of the existing term, i.e., if 70 years remained on your current lease, a term of 160 years will be obtained and the ground rent is in effect extinguished by reducing it to a peppercorn.
- Your right to extend your lease may be exercised again and again in the same way and therefore there is no bar on further applications to extend.
You can negotiate outside the statutory framework – known as a Voluntary Lease Extension
The Law Commission published its report on 21 July 2020 on leasehold reform. It included changes to the process of obtaining a lease extension, making it cheaper and simpler. It could be a good time for you to extend your lease. If you would like to know more please contact our specialist team who can take you through the possible benefits and alternative options available to you.
- Melissa Casey
- Landlord and tenant
- Lease Extensions
- Leasehold Enfranchisement
- Residential Leasehold Management
- Commercial Property