Lease Extensions
The 1993 Leasehold Reform Housing and Urban Development Act (as amended) gives a flat owner the right to extend their lease so long as they have owned the flat for at least 2 years.
The Act lays down a procedure summarised as follows:
i) the flat owner serves an initial notice on the landlord stating what the flat comprises, details of the lease and the price offered
ii) within two months the landlord is required to serve a counter notice acknowledging the flat owner’s right to a lease extension
iii) if there is a dispute over the price, the flat owner then has six months within which they can apply to the Leasehold Valuation Tribunal (LVT) who will determine the price to be paid
iv) once the price has been agreed a variation to the lease is dealt with by the solicitors
Within the six months mentioned in (iii) above the first two months are set aside as a cooling off period designed to get the valuers for both parties together to see if an agreement on price can be reached. 90% of the time a compromise is reached.
Once the lease has been extended the flat will have a higher value as there is a long lease with no ground rent payable.
The secret of success is getting the procedure right as if a bad notice is served or the time restraints are not complied with, the flat owner will then be barred from taking further action for another 12 months.
SMR has the expertise to act on your behalf in negotiating a lease extension and to ensure that the timescales are met