The Grant Saw Residential Property team will be delighted to assist home owners seeking to extend the length of their residential leases. We also act on behalf of landlords to assist them following their receipt of a request to extend the tenant’s lease.
Why would someone require this service?
To assist home owners to extend the duration of the lease on their home or investment property. Extending the lease can substantially increase the value of your property. It is advisable to extend your lease prior to the lease having less than 80 years left to run. The reason being, if there is less than 80 years left on your lease, the landlord will be entitled to seek what is known as a “marriage value” premium. This essentially means that your landlord will be entitled to ask for a higher sum to be paid as consideration for extending the length of your lease.
How does the process work/what are the steps?
In order to be eligible to extend a residential lease, the tenant must have owned the property for at least a period of 2 years and the lease originally granted must be for a period of at least 21 years (for a statutory lease extension).
The procedure involved is complex. The legal route taken to extend the lease will depend upon the tenant’s own particular circumstances. In most cases it will be advisable to obtain a formal valuation of the property from a surveyor who is experienced in providing such valuations.
The tenant will be required to serve what is called an Initial Notice on the landlord. Within this notice the tenant will be obliged to set out the price they are offering to pay for the lease extension. The landlord will then consider your offer. If it is agreed, the parties can attend to the formality of extending the lease and registering this with the Land Registry.
The landlord however is not obliged to agree the price the tenant has proposed to pay and the landlord may wish to seek a higher price.
If the parties are unable to agree on all issues relating to the proposed lease extension (including the sum payable), then the matter will ultimately be decided at the First Tier Tribunal (Property Chamber). For a more detailed explanation visit www.lease-advice.org.
Is it expensive?
Our charges vary according to the degree of complexity of the lease extension requested. Our charges will also be based on whether the parties are agreeable to extending the lease amicably or whether it is necessary to proceed with the statutory procedure which can include the First-Tier Tribunal.
In addition to the tenant paying for their own solicitors and surveyors fees, the tenant will also be responsible for paying for the landlord’s legal and surveying fees in relation to extending the lease. The tenant will not however be responsible for paying the landlord’s fees associated with an application and any subsequent hearing with the First-Tier Tribunal.
Why are Grant Saw the best people for the job?
The Grant Saw property team are experienced in successfully acting for numerous landlords and tenants in relation to lease extensions.
Furthermore, should there be disagreement between the parties, the matter can swiftly be transferred to the firm’s litigation department who will provide you with assistance at the First-Tier Tribunal).