Formal leasehold extension under the Act
Leasehold extension is a right granted to tenants by the 1993 Leasehold Reform, Housing and Urban Development Act. This Act allows leaseholders to force the landlord to extend a leasehold by 90 years, which is then added to the remainder of their original lease. The extended lease is then subject to a peppercorn rent, which effectively means that they don’t have to pay any ground rent on that lease.
Leasehold extension is something that is only available to residential leaseholders, most often in blocks of flats
The Leasehold Reform Act 1993 also lays down the criteria that people need to meet if they want to consider extending their lease and also sets out the process to be followed in order to do so. Click here for more information about leasehold extension eligibility.
Informal leasehold extension
As an alternative to the statutory route to lease extension as described above, it is also possible to reach an informal or voluntary agreement to extend your lease with your freeholder. Whilst this can be quicker, there are a number of risks involved with this route – Click here to read more about the dangers of extending your lease informally.
Leasehold extension – how to deal how to deal with disputes
If you end up in a disagreement with your freeholder over your desire to extend your lease, then you will have to apply to the leasehold valuation tribunal [technically known these days as the First-Tier Tribunal Property Chamber these days, following a re-branding exercise], where your case will be heard and ruled on by an independent panel. Applications to the Leasehold Valuation Tribunal – which are expensive and can cause considerable delay – are relatively uncommon – fortunately common sense and a wish on behalf of both parties to keep legal costs down usually triumphs. Most extensions that are successfully negotiated end up at a tribunal.
If you are thinking of a lease extension under the Leasehold Reform Act 1993 then there is certain information you will need to collect and certain people you will need to get involved to help you. As with any aspect of the law it requires a particular process to be followed and there are plenty of opportunities for mistakes be made. In particular, there are a number of strict deadlines you would need to keep to. As a result it is definitely worth doing a bit of research to get to grips with the issues and then you will definitely need to appoint specialist lease extension solicitors and surveyors who will be able to help you through the process.
For advice about how Leasehold Extension UK could help you, contact us today
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