What is a Lease Extension?
The Leasehold Reform Housing and Urban Development Act 1993 (as amended) governs the right to an additional term of 90 years, at a peppercorn rent.
This means NO GROUND RENT. The additional 90 years is plus the present unexpired term.
You may be having problems selling your flat due to the short lease.
You might have a clause which will lead to a significant rise in the ground rent. This would certainly affect your ability to sell.
If you are buying a flat with a short lease the current owner may be able to serve & register the Initial Notice. This can then be transferred to you so that you do not then have to wait the two year qualifying period before you can apply to extend.
You cannot extend your lease if:
Crown properties are excluded; although the Crown is not bound by the legislation the Minister has stated to the House of Commons that the Crown will be prepared to comply with the principles of it.
To ‘qualify’ as a leaseholder you must own a ‘long lease’ and have been the owner during the past two years; not as a business or commercial tenant. You do not need to have occupied for this period, simply owned the lease for at least two years.
A ‘long lease’ is defined as:
- A lease granted for in excess of 21 years.
- Leases which contain a covenant providing a right of perpetual renewal
- A lease that ends on death or marriage or a date unknown
- A leaseholder having held over at the expiry of a long lease, and the landlord has not served a notice terminating the tenancy
- A shared ownership lease where the leaseholders’ share is 100%
If the Tenant’s Initial Notice has been served it can be assigned with the lease when the flat is sold. This way the owner/ leaseholder, if they meet the requirements etc. can serve notice and sell the flat with the benefit of the notice. The purchaser can then proceed with the application without having to wait the two years. This is of help where a purchaser will not wait to qualify or where a short term lease poses mortgage difficulties.
Recent court cases have decided that offers made in notices that cannot be justified in Valuation Terms render the notice invalid. A Professional Valuation is important not only to ensure that you know what you should pay but also to ensure you do not waste time and money.
You will be liable for the cost of the Landlord for a valuation and for the conveyance but not the hearing or any negotiations.
How AWH can help
Consistent communication. At every stage in the process, we contact you to provide updates.
Trusted advisors. We advise clients on a multitude of different facets of property, and would be pleased to help you with yours. See our testimonials page for more from our diverse range of clients.
Call us now on 0800 071 5517 or email us through our contact page.
Additional Resource
Bloomsbury Plaza Residents Association
It has been a great pleasure to work with you since AWH commenced the management. We have all been much impressed by AWH.
It has been a great pleasure to work with you since AWH commenced the management. We have all been much impressed by AWH.
Hanover Gate Mansions
Thank you for doing such a great job of managing the properties. Before you took over we always noticed that there seemed to be an unnecessary amount of gardening being done - at an excessive cost per year. We're pleased to see that the front garden looks just as nice but you've significantly cut the costs.
Removing the fire escapes, as well as improving safety will be a significant improvement to the light quality in the flats below, and will reduce the damage to the windows below.
- Lessee at Hanover Gate Mansions
Thank you for doing such a great job of managing the properties. Before you took over we always noticed that there seemed to be an unnecessary amount of gardening being done - at an excessive cost per year. We're pleased to see that the front garden looks just as nice but you've significantly cut the costs.
Removing the fire escapes, as well as improving safety will be a significant improvement to the light quality in the flats below, and will reduce the damage to the windows below.
- Lessee at Hanover Gate Mansions
Climpson & Co. Limited
What can I say but you're doing a fantastic Job and we appreciate all you're doing for us.
What can I say but you're doing a fantastic Job and we appreciate all you're doing for us.
Graham Properties
I would like to take this opportunity to comment that having dealt with multiple managing agents over the years, it was a breath of fresh air to deal with your company who sent everything across very precisely and efficiently and made the whole process extremely straight forward and easy, I very much appreciate it.
I would like to take this opportunity to comment that having dealt with multiple managing agents over the years, it was a breath of fresh air to deal with your company who sent everything across very precisely and efficiently and made the whole process extremely straight forward and easy, I very much appreciate it.
Chancellor Court N3
Moving the managing agents of our block of flats to Clive Greenwood and his team at Anderson Wilde & Harris, has proved a breath of fresh air. They have grasped the various inherited nuances that came with the block. They are swift to respond to every request or incident be they current, or future planned upgrade issues. The latter fully supported by an excellent AWH Building Projects Management team. They answer their telephones without having to go through time consuming switchboards, and reply almost instantly to messages and emails. Rapid communication and good advice has been the key for us and we are always felt to be important. What more should one wish for?
Moving the managing agents of our block of flats to Clive Greenwood and his team at Anderson Wilde & Harris, has proved a breath of fresh air. They have grasped the various inherited nuances that came with the block. They are swift to respond to every request or incident be they current, or future planned upgrade issues. The latter fully supported by an excellent AWH Building Projects Management team. They answer their telephones without having to go through time consuming switchboards, and reply almost instantly to messages and emails. Rapid communication and good advice has been the key for us and we are always felt to be important. What more should one wish for?
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How can AWH help?
Consistent communication. At every stage in the process, we contact you to provide updates.
Trusted advisors. We advise clients on a multitude of different facets of property, and would be pleased to help you with yours. See our testimonials page for more from our diverse range of clients.
Call us now on 0800 071 5517 or email us on admin@awh.co.uk.