Extending a lease allows a flat owner to protect the value of their property. A flat with a short lease can be hard to remortgage, so a lease extension solicitor can assist in terms of making the property more appealing to investment buyers. A price is usually paid to the landlord for a lease extension. When unexpired terms of a lease are eighty years or less, the premium includes marriage value, which increases the premium. It is worthwhile to always extend a lease before they fall below eighty years.

A tenant that has been in a flat for two years or more is entitled to demand a ninety-year extension from the landlord, using the statutory lease extension process, which is under the Leasehold Reform, Housing and Urban Development Act 1993. This is a new lease for the extended rental term, known as a lease extension. The tenant who does not live at the flat, but who has owned the flat for two years is also entitled to this lease extension, which is where the lease extension solicitors come into play.

Tenants who start the statutory process for a lease extension can apply to the First-Tier Tribunal, determining the premium, if this has not already been agreed upon with the landlord. Tenants that do not qualify for a statutory lease extension may be able to agree to an extension voluntarily. There is no obligation for a landlord to agree to this extension. This means the rent and provisions of the lease would be negotiated. A voluntary lease extension is determined by the landlord and the tenant will need to be willing to proceed.

Statutory lease extensions are processes that are formally started by a tenant, which serves as a notice of claim to the landlord. This notice sets out the premium offered by the tenant for the extension, along with relevant proposals. The landlord has two months to consider the offer and give a counter-notice.

Ray Crudgington, the Managing Partner at Grant Saw Solicitors LLP, said “In the event, the premium and other terms are not agreed upon after a counter-notice, then the tenant or landlord can apply for these to be decided by the First-Tier Tribunal. The Tribunal will then determine a reasonable premium to be paid, along with other outstanding terms. Once both parties agree to the terms set out by the First Tier Tribunal, the lease is extended and registered at the Land Registry.”

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Grant Saw Solicitors LLP is a London based solicitor that provides a range of legal services to private and business clients. The firm has been operating since 1851 offering legal excellence and a modern and friendly approach. They are recognised for their excellence with numerous accreditations. Being members of Lawnet, they share ideas and resources. Grant Saw Solicitors LLP are based in Blackheath and Greenwich, both offering disabled access. Their extensive range of legal services ranges from tenant and landlord disputes to residential property transfer, commercial property, insolvency, employment and dispute resolution. Full details can be found at https://grantsaw.com.